Kent J. and Ruth W. Dawson - Page 12

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          MSA, both Geldbach and Southard were unknown to petitioner.  We             
          cannot say that reliance on the advice of virtual strangers who             
          promoted MSA amounts to reasonable conduct.  Such reliance is not           
          the type of activity that overcomes the additions to tax for                
          negligence or intentional disregard of the rules or regulations.            
          Patin v. Commissioner, 88 T.C. 1086, 1130 (1987), affd. without             
          published opinion 865 F.2d 1264 (5th Cir. 1989), affd. sub nom.             
          Gomberg v. Commissioner, 868 F.2d 865 (6th Cir. 1989), affd. sub            
          nom. Skeen v. Commissioner, 864 F.2d 93 (9th Cir. 1989), affd.              
          without published opinion sub nom. Hatheway v. Commissioner, 856            
          F.2d 186 (4th Cir. 1988).                                                   
               Petitioner points to his reliance on the appraisal prepared            
          by McGraw-Hill as evidence of his reasonable and prudent conduct.           
          However, the appraisal was part and parcel of the memorandum and            
          may not be considered unbiased and independent information.  In             
          addition, a thorough reading of the appraisal indicates that the            
          calculation of the fair market value of the tapes was based on              
          many assumptions, several of which are in direct conflict with              
          information provided elsewhere in the memorandum.  Petitioner's             
          argument that the cost of an independent appraisal would have               
          been prohibitive is unconvincing.  See Kirwan v. Commissioner,              
          T.C. Memo. 1994-520.                                                        
               Petitioner cites Mollen v. United States, 72 AFTR2d 93-                
          6443), 93-2 USTC par. 50,585 (D. Ariz. 1993), in support of his             






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