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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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Last modified: May 25, 2011