Joe E. Henry and Carolyn J.Henry - Page 17

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          facility.  Storey made no adequate investigation into the value             
          of the recycler, although, an investigation would have revealed             
          the existence of other plastics recycling machines available in             
          1981 and 1982 ranging in price from $20,000 to $200,000.  See               
          Provizer v. Commissioner, T.C. Memo. 1992-177.  Despite his lack            
          of special qualifications and professional skills in plastics               
          engineering, recycling, or materials, Storey made no effort to              
          contact or consult with anyone who possessed such qualifications.           
          Given Storey's background and experience, he undoubtedly was                
          aware that the tax benefits outlined in the offering memorandum             
          and claimed by petitioners depended in large part on the value of           
          the recycling machines.  Nevertheless, having no knowledge or               
          background regarding the value of the machines, he did nothing              
          sufficient to verify the representations made in the promotional            
          materials and by individuals associated with the promotion.  As             
          we view the matter, Storey's trips to inspect the machine and the           
          other aspects of this "investigation" were essentially                      
          superficial.  In effect, he relied not upon the information he              
          gathered through his own investigation, but upon representations            
          made by Sunbelt's promotional materials and promoters.                      
               Taking the above into consideration, petitioners' reliance             
          upon Storey was not reasonable.  A taxpayer may rely upon his               
          adviser's expertise, in this case financial planning and tax                
          advice, but it is not reasonable to rely upon an adviser                    
          regarding matters outside his field of expertise or with respect            




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