- 50 -
Appeals for the Ninth Circuit reversed our imposition of the
negligence additions to tax. Petitioners point out that the
taxpayer in that case relied in part upon a tax opinion contained
in the offering materials. However, the offering memoranda for
the Partnerships herein warned prospective investors that the
accompanying tax opinion letters were not in final form, and were
prepared for the general partner, and that prospective investors
should consult their own professional advisers with respect to
the tax benefits and tax risks associated with the Partnerships.
The tax opinion letter accompanying the SAB Reclamation offering
memorandum was addressed solely to the general partner and began
with the following disclaimer:
This opinion is provided to you for your individual
guidance. We expect that prospective investors will
rely upon their own professional advisors with respect
to all tax issues arising in connection with an
investment in the Partnership and the operations
thereof. We recognize that you intend to include this
letter with your offering materials and we have
consented to that with the understanding that the
purpose in distributing it is to assist your offerees'
and their tax advisors in making their own analysis and
not to permit any prospective investor to rely upon our
advice in this matter. [Emphasis added.]
3(...continued)3
part and revd. in part without published opinion sub nom. Balboa
Energy Fund 1981 v. Commissioner, 85 F.3d 634 (9th Cir. 1996),
involved a group of consolidated cases. The parties therein
agreed to be bound by the Court's opinion regarding the
application of the additions to tax under sec. 6653(a), inter
alia. Accordingly, although the Court's analysis focused on one
taxpayer, the additions to tax were sustained with respect to all
of the taxpayers.
Page: Previous 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 NextLast modified: May 25, 2011