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as to the value and purported uniqueness of the machines. The
offering memoranda for the Partnerships warned that the value
placed on the recyclers would probably be challenged by the IRS
as being in excess of fair market value. Nonetheless, Becker
never hired or consulted any plastics engineering or technical
experts with respect to the Plastics Recycling transactions.
Becker did speak to his client Canno, who apparently had some
knowledge of the plastics industry, but the substance of Canno's
purported comments is doubtful and he had only minimal
information about the transaction. Petitioners' reliance on
Becker and the offering materials was not reasonable.
In support of their contention that they acted reasonably,
petitioners cite Mauerman v. Commissioner, 22 F.3d 1001 (10th
Cir. 1994), revg. T.C. Memo. 1993-23. However, the facts in the
Mauerman case are distinctly different from the facts of these
cases. In Mauerman, the Tenth Circuit Court of Appeals held that
the Commissioner had abused her discretion for not waiving a
section 6661 addition to tax. Like section 6659, a section 6661
addition to tax may be waived by the Commissioner if the taxpayer
demonstrates that there was reasonable cause for his underpayment
and that he acted in good faith. Sec. 6661(c). The taxpayer in
Mauerman relied upon independent attorneys and accountants for
advice as to whether payments were properly deductible or
capitalized. The advice relied upon by the taxpayer in Mauerman
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