Bruce and Lois Zenkel, et al. - Page 35

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          questionable tax shelter plans."  Zmuda v. Commissioner, 731 F.2d           
          1417, 1422 (9th Cir. 1984), affg. 79 T.C. 714 (1982).                       
               Petitioners' reliance on Krause v. Commissioner, 99 T.C. 132           
          (1992), affd. sub nom. Hildebrand v. Commissioner, 28 F.3d 1024             
          (10th Cir. 1994) and Rousseau v. United States, 71A AFTR 2d 93-             
          4294, 91-1 USTC par. 50,252 (E.D. La. 1991), is misplaced.  The             
          facts in Krause v. Commissioner, supra, are distinctly different            
          from the facts of these cases.  In the Krause case, the taxpayers           
          invested in limited partnerships whose investment objectives                
          concerned enhanced oil recovery (EOR) technology.  The Krause               
          opinion states that during the late 1970's and early 1980's, the            
          Federal Government adopted specific programs to aid research and            
          development of EOR technology.  In holding that the taxpayers in            
          the Krause case were not liable for the negligence additions to             
          tax, this Court noted that one of the Government's expert                   
          witnesses acknowledged that "investors may have been                        
          significantly and reasonably influenced by the energy price                 
          hysteria that existed in the late 1970's and early 1980's to                
          invest in EOR technology."  Id. at 177.  In the present cases,              
          however, as explained by respondent's expert Steven Grossman, the           
          price of plastics materials was not directly proportional to the            
          price of oil, and there is no persuasive evidence that the so-              
          called oil crisis had a substantial bearing on petitioners'                 
          decisions to invest.  While EOR was, according to our Krause                






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