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Commissioner, 6 T.C. 1158, 1165 (1946), affd. 162 F.2d 513 (10th
Cir. 1947).
On this record, we conclude that petitioners Glassley and
Houser did not act in good faith reliance on professional advice.
In each case, the record shows that they acted on their
fascination with the idea of participating in a jojoba farming
venture and their satisfaction with tax benefits of expensing
their investments, which were clear to them from the promoter's
presentation. They passed the offering circular by their
accountants for a "glance", and Dr. Houser spoke with his
brother, an attorney, though apparently not a person
knowledgeable about tax matters or agriculture. The facts here
do not establish consultation with an expert. Cf. Durrett v.
Commissioner, 71 F.3d 515 (5th Cir. 1996), affg. in part, revg.
in part T.C. Memo. 1994-179. Petitioners Glassley and Houser
have not established that their purported reliance on the advice
of their accountants (and brother) actually occurred or was
reasonable, in good faith, and based on full disclosure. Hence,
such alleged reliance is not sufficient to shield them from
liability for the negligence additions to tax.
An addition to tax for negligence is correctly assessed in
cases where deductions claimed on returns are not supported by
the facts. Sandvall v. Commissioner, supra; Marcello v.
Commissioner, supra. Petitioners claimed deductions for purported
research and experimental expenditures that we have found to have
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