- 12 - profit objective where the only appraisals relied upon by taxpayer-investors were made by a tax shelter promoter). Petitioners did not investigate Dollar’s professional qualifications. Cf. Allen v. Commissioner, 925 F.2d 348, 354 (9th Cir. 1991), affg. 92 T.C. 1 (1989). Petitioners used an independent tax preparation service to prepare their returns before 1983. In 1983, they relied on someone who had a financial interest in the shelter in which they were investing to prepare their return. Unlike the Heasleys, petitioners obtained tax advice only from the shelter promoter. See Klieger v. Commissioner, T.C. Memo. 1992-734 (taxpayers were negligent because they relied unreasonably on advice of shelter promoters). To avoid the addition to tax for negligence on the ground of reasonable reliance, petitioners must show that they reasonably relied on the advice of a qualified and independent tax professional, not the tax shelter promoter. Id.; see Estate of Strober v. Commissioner, T.C. Memo. 1992-350. Petitioners made no real effort to monitor their investment or conduct any meaningful review of the computer software in which they had bought an interest. Heasley v. Commissioner, supra (taxpayers who actively monitored their investment and made inquiries of servicing agent were not negligent). Petitioners' receipt of a $60.48 distribution is not significant because it is only 1-1/4 percent of petitioners' payment; they would have toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
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