Stuart A. and Harriet J. Gollin, et al. - Page 2

                                        - 2 -                                         
               Gregory S. Nickerson and Frances Ferrito Regan, for                    
          respondent in docket No. 21847-90.                                          
                                      CONTENTS                                        
                                                                      Page            
          MEMORANDUM FINDINGS OF FACT AND OPINION....................... 2            
          OPINION OF THE SPECIAL TRIAL JUDGE............................ 3            
          FINDINGS OF FACT.............................................. 7            
          A. The Plastics Recycling Transactions...................... 7              
          B. The Partnerships.........................................10              
          C. Stuart Becker and Steven Leicht..........................13              
          D. Petitioners and Their Introduction to the Partnership                    
               Transactions.............................................17            
               1. Stuart and Harriet J. Gollin..........................17            
               2. Myron and Patricia Fishbach...........................20            
               3. Charles Fredericks, Jr. and Stephanie Fredericks......23            
          OPINION.......................................................29            
          A. Section 6653(a)--Negligence..............................31              
               1. The So-Called Oil Crisis............................33              
               2. Petitioners' Purported Reliance on Tax                              
                    Advisers............................................38            
                    a.   The Circumstances Under Which a                              
                         Taxpayer May Avoid Liability Under                           
                         Section 6653(a)(1) and (2) Because                           
                         of Reasonable Reliance on Competent                          
                         and Fully Informed Professional                              
                         Advice.........................................39            
                    b. Becker.........................................41              
                    c. Hertan.........................................48              
                    d. Steele, Cohen, and Porter......................51              
               3. The Private Offering Memoranda......................54              
               4. Miscellaneous.......................................59              
               5. Conclusion as to Negligence.........................68              
          B. Section 6659--Valuation Overstatement....................69              
               1. The Grounds for Petitioners' Underpayments..........71              
               2. Concession of the Deficiency........................76              
               3. Section 6659(e).....................................79              
          C. Petitioners' Motions For Leave To File Motion For                        
               Decision Ordering Relief From the Negligence Penalty                   
               and the Penalty Rate of Interest and To File Supporting                
               Memorandum of Law........................................83            
                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               DAWSON, Judge:  These cases were assigned to Special Trial             
          Judge Norman H. Wolfe pursuant to the provisions of section                 




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