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Western cases, however, the Courts of Appeals have affirmed
decisions of the Tax Court imposing negligence additions to tax.
See Foulds v. Commissioner, T.C. Memo. 1994-489 (the well-
educated taxpayer failed to establish the substance of advice,
and the purported adviser lacked tax expertise), affd. without
published opinion 94 F.3d 651 (9th Cir. 1996); Chakales v.
Commissioner, T.C. Memo. 1994-408 (reliance on a long-term
adviser, who was a tax attorney and accountant, and who in turn
relied on a promoter of the venture, held unreasonable), affd. 79
F.3d 726 (8th Cir. 1996); Kozlowski v. Commissioner, T.C. Memo.
1993-430 (reliance on adviser held unreasonable absent a showing
that the adviser understood the transaction and was qualified to
give an opinion whether it was bona fide), affd. without
published opinion 70 F.3d 1279 (9th Cir. 1995); Freytag v.
Commissioner, 89 T.C. at 849 (reliance on tax advice given by
attorneys and C.P.A.'s held unreasonable absent a showing that
the taxpayers consulted any experts regarding the bona fides of
the transactions). Here we have found that none of petitioners'
colleagues at Shea & Gould, including Ferraro, Carroll, and
Feinstein, possessed sufficient knowledge of the plastics or
recycling industries to render a competent opinion. This fact
has been deemed relevant by the Court of Appeals for the Second
Circuit, the court to which appeal in these cases lies. See
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