- 15 -
and that Finkle & Co. received a sales commission on his
investment in the Partnerships. Cote also knew that Frabotta and
Omohundro were not plastics recycling experts. Cote knew of
Tomasetti because he was Omohundro's accountant, but Cote never
had any direct conversations with Tomasetti.
None of petitioners have any education or work experience in
plastics recycling or plastics materials. They did not
independently investigate the Sentinel EPE recyclers or see a
Sentinel EPE recycler or any other type of plastics recycler
prior to participating in the recycling ventures.
OPINION
We have decided more than two dozen of the Plastics
Recycling group of cases.8 The majority of these cases, like the
8 Provizer v. Commissioner, T.C. Memo. 1992-177, concerned the
substance of the partnership transaction and also the additions
to tax. The following cases concern additions to tax for
negligence, inter alia: Reimann v. Commissioner, T.C. Memo.
1996-84; Bennett v. Commissioner, T.C. Memo. 1996-14; Atkind v.
Commissioner, T.C. Memo. 1995-582; Triemstra v. Commissioner,
T.C. Memo. 1995-581; Pace v. Commissioner, T.C. Memo. 1995-580;
Dworkin v. Commissioner, T.C. Memo. 1995-533; Wilson v
Commissioner, T.C. Memo. 1995-525; Avellini v. Commissioner, T.C.
Memo. 1995-489; Paulson v. Commissioner, T.C. Memo. 1995-387;
Zidanich v. Commissioner, T.C. Memo. 1995-382; Ramesh v.
Commissioner, T.C. Memo. 1995-346; Reister v. Commissioner, T.C.
Memo. 1995-305; Fralich v. Commissioner, T.C. Memo. 1995-257;
Shapiro v. Commissioner, T.C. Memo. 1995-224; Pierce v.
Commissioner, T.C. Memo. 1995-223; Fine v. Commissioner, T.C.
Memo. 1995-222; Pearlman v. Commissioner, T.C. Memo. 1995-182;
Kott v. Commissioner, T.C. Memo. 1995-181; and Eisenberg v.
Commissioner, T.C. Memo. 1995-180. Also, Baratelli v.
Commissioner, T.C. Memo. 1994-484; Estate of Satin v.
Commissioner, T.C. Memo. 1994-435; Fisher v. Commissioner, T.C.
Memo. 1994-434; Foam Recycling Associates v. Commissioner, T.C.
Memo. 1992-645; and Madison Recycling Associates v. Commissioner,
T.C. Memo. 1992-605, concern other issues.
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