- 2 -
CONTENTS
Page
MEMORANDUM FINDINGS OF FACT AND OPINION....................... 2
OPINION OF THE SPECIAL TRIAL JUDGE............................ 3
FINDINGS OF FACT.............................................. 6
A. The Plastics Recycling Transactions...................... 6
B. The Partnerships......................................... 9
C. Stuart Becker and Steven Leicht..........................11
D. Petitioners and Their Introduction to the Partnership
Transactions.............................................15
OPINION.......................................................20
A. Section 6653(a)--Negligence..............................22
1. The Private Offering Memoranda......................24
2. The So-Called Oil Crisis............................30
3. Petitioners' Purported Reliance on a Tax
Adviser.............................................33
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.........................................34
b. Becker and Tucker..............................36
4. Miscellaneous.......................................45
5. Conclusion as to Negligence.........................52
B. Section 6659--Valuation Overstatement....................53
1. The Grounds for Petitioners' Underpayments..........54
2. Concession of the Deficiencies......................59
3. Section 6659(e).....................................62
C. Petitioners' Motion 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........................................65
MEMORANDUM FINDINGS OF FACT AND OPINION
DAWSON, Judge: These consolidated cases were assigned to
Special Trial Judge Norman H. Wolfe pursuant to the provisions of
section 7443A(b)(4) and Rules 180, 181, and 183. All section
references are to the Internal Revenue Code in effect for the tax
years in issue, unless otherwise indicated. All Rule references
are to the Tax Court Rules of Practice and Procedure. The Court
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011