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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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