James H. Upchurch - Page 18

                                        - 18 -                                          
               Should you elect to schedule more time with Mr.                          
               Shriver, he will discuss a fee schedule for the                          
               services to be rendered.                                                 
          Petitioner entered into a $1,500 agreement with Professional for              
          service, which included 1 hour with a "certified public                       
          accountant", whom we must assume is Mr. Shriver.  Petitioner has              
          failed to show Mr. Shriver's independence from the organization               
          that, at the very least, benefits from the sale of the investment             
          opportunity on which Mr. Shriver opined.  Considering established             
          precedent and the specific circumstances of this case, it was not             
          reasonable for petitioner to rely on the individuals in question.             
               Petitioner had a clear basic understanding of the dynamics               
          and magnitude of this energy-device transaction.  He was aware                
          that his tax benefits and any potential for income stemmed from               
          the lease of a device whose purported cost, relative to his net               
          worth and income, was substantial.  His focus was primarily, if               
          not solely on the tax benefits.  Petitioner would have otherwise              
          been concerned about the bona fides of the transaction.  If                   
          petitioner was interested in income (retirement or otherwise) he              
          would, at the very least, want to know whether such an energy                 
          device existed, operated, was leased and had value equivalent to              
          the claims on which his reported credits and deductions were                  
          based.                                                                        
               Accordingly, it was not reasonable for him to ignore the                 
          bona fides of the transaction or to rely on persons who were                  
          without specialized knowledge or who had a financial interest in              




Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  Next

Last modified: May 25, 2011