- 36 -                                         
          not an absolute defense to negligence, but rather a factor to be            
          considered.  In order for reliance on professional advice to                
          excuse a taxpayer from the negligence additions to tax, the                 
          taxpayer must show that such professional had the expertise and             
          knowledge of the pertinent facts to provide valuable and                    
          dependable advice on the subject matter.  Goldman v.                        
          Commissioner, 39 F.3d 402 (2d Cir. 1994), affg. T.C. Memo. 1993-            
          480; Freytag v. Commissioner, supra; Kozlowski v. Commissioner,             
          T.C. Memo. 1993-430, affd. without published opinion 70 F.3d 1279           
          (9th Cir. 1995).                                                            
               Reliance on representations by insiders, promoters, or                 
          offering materials has been held an inadequate defense to                   
          negligence.  Goldman v. Commissioner, supra; Pasternak v.                   
          Commissioner, 990 F.2d 893, 903 (6th Cir. 1993), affg. T.C. Memo.           
          1991-181; LaVerne v. Commissioner, 94 T.C. 637, 652-653 (1990),             
          affd. without published opinion 956 F.2d 274 (9th Cir. 1992),               
          affd. without published opinion sub nom. Cowles v. Commissioner,            
          949 F.2d 401 (10th Cir. 1991); Marine v. Commissioner, 92 T.C.              
          958, 992-993 (1989), affd. without published opinion 921 F.2d 280           
          (9th Cir. 1991); McCrary v. Commissioner, 92 T.C. 827, 850                  
          (1989); Rybak v. Commissioner, 91 T.C. 524, 565 (1988).  Pleas of           
          reliance have been rejected when neither the taxpayer nor the               
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