- 32 -
Department of Energy (DOE), all published in the years 1980 and
1981. Both the articles from Modern Plastics and the report by
the DOE speculated on the price of oil, among other things. The
preface to the DOE report cautioned about "the tremendous
uncertainties underlying energy projections" and warned "that
[their] projections do not constitute any sort of blueprint for
the future." Reflective of such uncertainties, an April 1980
article in Modern Plastics contemplated resin price hikes, while
a May 1981 article predicted a leveling off of prices, market
disruptions, and an industrywide shakeout. Spears does not
purport to have read, or in any way relied upon, the DOE report
or the Modern Plastics articles, and has not otherwise explained
the connection between these speculative materials and his
investing in the Partnerships.
Petitioners' reliance on Krause v. Commissioner, 99 T.C. 132
(1992), affd. sub nom. Hildebrand v. Commissioner, 28 F.3d 1024
(10th Cir. 1994), and Rousseau v. United States, 71A AFTR 2d 93-
4294, 91-1 USTC par. 50,252 (E.D. La. 1991), is misplaced. The
facts in Krause v. Commissioner, supra, are distinctly different
from the facts of these cases. In the Krause case, the taxpayers
invested in limited partnerships whose investment objectives
concerned enhanced oil recovery (EOR) technology. The Krause
Page: Previous 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 NextLast modified: May 25, 2011