- 38 -
available to him, petitioner learned or should have learned that
the Sentinel EPE recycler was not worth in excess of $50,000 in
1981.
In support of their contention that they acted reasonably,
petitioners cite Mauerman v. Commissioner, 22 F.3d 1001 (10th
Cir. 1994), revg. T.C. Memo. 1993-23, and Rousseau v. United
States, 71A AFTR 2d 93-4294, 91-1 USTC par. 50,252 (E.D. La.
1991). However, we consider the Mauerman case and the Rousseau
case (for the same reasons discussed supra) distinguishable. In
Mauerman, the Court of Appeals for the Tenth Circuit held that
the Commissioner had abused discretion for not waiving a section
6661 addition to tax. Like section 6659, a section 6661 addition
to tax may be waived by the Commissioner if the taxpayer
demonstrates that there was reasonable cause for his underpayment
and that he acted in good faith. Sec. 6661(c). The taxpayer in
Mauerman reasonably relied upon independent attorneys and
accountants for advice as to whether payments were properly
deductible or capitalized. In the present case, however, the
record fails to establish that petitioner reasonably relied upon
any independent, expert advice. None of the persons that
petitioner purportedly spoke with testified in this case, and
petitioner's self-serving testimony is unpersuasive.
Consequently, we consider petitioners' reliance on the Mauerman
and Rousseau cases inapplicable.
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