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Gail A. Campbell and Frances Ferrito Regan, for respondent
in docket No. 19760-89.
Jennifer J. Kohler and Frances Ferrito Regan, for respondent
in docket No. 24512-89.
Wendy Sands and Frances Ferrito Regan, for respondent in
docket No. 10147-91.
CONTENTS
Page
MEMORANDUM FINDINGS OF FACT AND OPINION.......................3
OPINION OF THE SPECIAL TRIAL JUDGE............................3
FINDINGS OF FACT..............................................6
A. The Plastics Recycling Transactions......................6
B. The Partnerships.........................................9
C. Richard Roberts.........................................12
D. Stuart Becker and Steven Leicht.........................13
E. Petitioners and Their Introduction to the Partnership
Transactions............................................17
1. Bruce and Lois Zenkel...............................17
2. Robert G. Blount....................................19
3. Morton and Carol David..............................22
4. Ira and Helen Selvin................................24
OPINION......................................................26
A. Statute of Limitations..................................29
B. Section 6653(a)--Negligence.............................31
1. The So-Called Oil Crisis...........................33
2. Petitioners' Purported Reliance on Ta7
Advisers...........................................37
a. The Circumstances Under Which a Taxpayer May
Avoid Liability Under Section 6653(a)(1) and
(2) Because of Reasonable Reliance on
Competent and Fully Informed Professional
Advice.........................................40
b. Becker.........................................41
c. Steele and Sprague.............................48
3. The Private Offering Memoranda.....................51
4. Miscellaneous......................................55
5. Conclusion as to Negligence........................62
C. Section 6659--Valuation Overstatement...................62
1. The Grounds for Petitioners' Underpayments.........64
2. Concession of the Deficiency.......................69
3. Section 6659(e)....................................73
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Last modified: May 25, 2011