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from the negligence additions to tax, the taxpayer must show that
such professional had the expertise and knowledge of the
pertinent facts to provide informed advice on the subject matter.
David v. Commissioner, 43 F.3d 788, 789-790 (2d Cir. 1995), affg.
T.C. Memo. 1993-621; Goldman v. Commissioner, 39 F.3d 402 (2d
Cir. 1994), affg. T.C. Memo. 1993-480; Freytag v. Commissioner,
supra; Sacks v. Commissioner, T.C. Memo. 1994-217, affd. 82 F.3d
918 (9th Cir. 1996); Kozlowski v. Commissioner, T.C. Memo. 1993-
430, affd. without published opinion 70 F.3d 1279 (9th Cir.
1995); see also Stone v. Commissioner, T.C. Memo. 1996-230;
Reimann v. Commissioner, T.C. Memo. 1996-84.
Reliance on representations by insiders, promoters, or
offering materials has been held an inadequate defense to
negligence. Goldman v. Commissioner, supra; Pasternak v.
Commissioner, 990 F.2d 893 (6th Cir. 1993), affg. Donahue v.
Commissioner, T.C. Memo. 1991-181; LaVerne v. Commissioner, 94
T.C. 637, 652-653 (1990), affd. without published opinion 956
F.2d 274 (9th Cir. 1992), affd. without published opinion sub
nom. Cowles v. Commissioner, 949 F.2d 401 (1Oth Cir. 1991);
Marine v. Commissioner, 92 T.C. 958, 992-993 (1989), affd.
without published opinion 921 F.2d 280 (9th Cir. 1991); McCrary
v. Commissioner, 92 T.C. 827, 850 (1989); Rybak v. Commissioner,
91 T.C. 524, 565 (1988). Pleas of reliance have been rejected
when neither the taxpayer nor the advisers purportedly relied
upon by the taxpayer knew anything about the nontax business
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