Estate of Romine C. Hogard, Deceased, James C. Elliott, Personal Representative, and Bill F. Stewart, Personal Representative, and Wanda L. Hogard, et al. - Page 26

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          failed to exercise due care in claiming tax benefits from that              
          investment.  Their subjective intent does not excuse them from              
          the consequences of claiming deductions and credits to which                
          under the circumstances they were clearly not entitled.  See                
          Klieger v. Commissioner, T.C. Memo. 1992-734.                               
               We have considered and find unpersuasive petitioners'                  
          arguments comparing this case with other cases that were resolved           
          in the taxpayers' favor with respect to the negligence addition             
          to tax.                                                                     
               The Gilmores, Wilson, and G&W failed to exercise due care in           
          claiming the deductions and tax credits relating to their                   
          respective investments in Southeast.  We find that they did not             
          reasonably rely upon Stewart or in good faith investigate the               
          aspect of the investment that generated the "attractive" tax                
          benefits--the value of the Sentinel recycler.  Therefore, we hold           
          that these petitioners and the Hogards are liable for the                   
          negligence additions to tax under the provisions of section                 
          6653(a) for 1979 and 1980 and section 6653(a)(1) and (2) for                
          1981, 1982, and 1983.                                                       













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