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Commissioner, 902 F.2d 380, 383 (5th Cir. 1990), revg. T.C. Memo.
1988-408 (taxpayers held not negligent because they were
unsophisticated with limited prior investment experience and
had no formal education beyond high school).
In Heasley v. Commissioner, supra at 381, the taxpayers
sought the advice of an accountant who independently reviewed the
prospectus and the accompanying tax and legal opinions and found
everything to be in order. Because the taxpayers in Heasley
previously had not employed an accountant, they hired an
accountant referred to them by the promoter of the tax shelter.
Id. There is no indication, however, that the accountant was an
employee of the promoter or otherwise had any financial interest
in the tax shelter. Id.
Petitioners' situation is not like that in Heasley.
Petitioners did not have a C.P.A. or other tax or business
professional independently review their investment in Century.
They did not investigate Dollar or Century before investing.
Dollar was the promoter; he was not independent. There is no
showing that he was a qualified tax professional. They relied on
the advice of Dollar. It was not reasonable or prudent to have
done so. Advice of the promoters or their agents is not advice
of independent professionals. Pasternak v. Commissioner, 990
F.2d at 903; Gilman v. Commissioner, T.C. Memo. 1990-205, affd.
933 F.2d 143 (2d Cir. 1991) (lessees of computer software lack
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