- 50 -
our imposition of the negligence additions to tax. Petitioners
point out that the taxpayer in that case relied in part upon a
tax opinion contained in the offering materials. However, none
of petitioners in the cases before us read the Poly Reclamation
or Clearwater offering memoranda, let alone the tax opinions
appended thereto.
Moreover, the offering memoranda for the Partnerships herein
warned prospective investors that the accompanying tax opinion
letters were not in final form, and were prepared for the general
partner, and that prospective investors should consult their own
professional advisers with respect to the tax benefits and tax
risks associated with the Partnerships. The tax opinion letters
accompanying the Clearwater and Poly Reclamation offering
memoranda were addressed solely to the general partner and began
with the following opening disclaimer:
This opinion is provided to you for your individual
guidance. We expect that prospective investors will
rely upon their own professional advisors with respect
to all tax issues arising in connection with their
investment in the Partnership and the operations
thereof. We recognize that you intend to include this
17(...continued)
part and revd. in part without published opinion sub nom. Balboa
Energy Fund 1981 v. Commissioner, 85 F.3d 634 (9th Cir. 1996),
involved a group of consolidated cases. The parties therein
agreed to be bound by the Court's opinion regarding the
application of the additions to tax under sec. 6653(a), inter
alia. Accordingly, although the Court's analysis focused on one
taxpayer, the additions to tax were sustained with respect to all
of the taxpayers.
Page: Previous 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 NextLast modified: May 25, 2011