Jeffrey I. and Roberta H. Stone - Page 28

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          determinations in the notices of deficiency.  Even so,                      
          petitioners' counsel obtained copies of these reports and urge              
          that they support the reasonableness of the values reported on              
          petitioners' returns.  Not surprisingly, petitioners did not call           
          Carmagnola to testify in these cases,13 but preferred instead to            
          rely solely upon his preliminary, ill-founded valuation                     
          estimates.  The Carmagnola reports were a part of the record                
          considered by this Court and reviewed by the Sixth Circuit Court            
          of Appeals in the Provizer case, where we held the taxpayers                
          negligent.  Consistent therewith, we find in these cases, as we             
          have found previously, that the reports prepared by Carmagnola              
          are unreliable and of no consequence.  Petitioners are not                  
          relieved of the negligence additions to tax based on the                    
          preliminary reports prepared by Carmagnola.                                 
               Petitioners' reliance on Mollen v. United States, 72 AFTR 2d           
          93-6443, 93-2 USTC par. 50,585 (D. Ariz. 1993) is misplaced.  The           
          taxpayer in Mollen was a medical doctor who specialized in                  
          diabetes and who, on behalf of the Arizona Medical Association,             
          led a continuing medical education (CME) accreditation program              
          for local hospitals.  The underlying tax matter involved the                
          taxpayer's investment in Diabetics CME Group, Ltd., a limited               
          partnership which invested in the production, marketing, and                
          distribution of medical educational video tapes.  The District              

          13   Carmagnola has not been called to testify in any of the                
          Plastics Recycling cases before us.                                         

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