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CONTENTS
Page
MEMORANDUM FINDINGS OF FACT AND OPINION....................... 2
OPINION OF THE SPECIAL TRIAL JUDGE............................ 3
FINDINGS OF FACT.............................................. 7
A. The Plastics Recycling Transactions...................... 7
B. The Partnerships.........................................10
C. Richard Roberts..........................................12
D. Guy B. Maxfield..........................................13
E. Petitioners and Their Introduction to the Partnership
Transactions.............................................18
1. John and Marianne Sann...............................18
2. Laurence M. Addington................................22
3. David M. Cohn........................................25
OPINION.......................................................30
A. Statute of Limitations...................................33
B. Section 6653(a)--Negligence..............................39
1. The Private Offering Memoranda......................41
2. The So-Called Oil Crisis............................47
3. Petitioners' Purported Reliance on an Adviser.......50
a. The Circumstances Under Which a
Taxpayer May Avoid Liability Under
Section 6653(a)(1) and (2) Because
of Reasonable Reliance on Competent
and Fully Informed Professional
Advice.........................................51
b. Maxfield.......................................53
4. Miscellaneous.......................................60
5. Conclusion as to Negligence.........................70
C. Section 6659--Valuation Overstatement....................71
1. The Grounds for Petitioners' Underpayments..........73
2. Concession of the Deficiency........................77
3. Section 6659(e).....................................81
D. Petitioners' Motions For Leave To File Motion For
Decision Ordering Relief From the Negligence Penalty
and the Penalty Rate of Interest and To File Supporting
Memorandum of Law........................................85
MEMORANDUM FINDINGS OF FACT AND OPINION
DAWSON, Judge: These cases were assigned to Special Trial
Judge Norman H. Wolfe pursuant to the provisions of section
7443A(b)(4) and Rules 180, 181, and 183. They were tried and
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Last modified: May 25, 2011