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American Properties, Inc. v. Commissioner, 28 T.C. 1100, 1116-
1117 (1957), affd. per curiam 262 F.2d 150 (9th Cir. 1958); Buck
v. Commissioner, T.C. Memo. 1997-191. Reliance on professional
advice, standing alone, is not an absolute defense to negligence,
but rather a factor to be considered. Freytag v. Commissioner,
supra. For reliance on professional advice to excuse a taxpayer
from the negligence additions to tax, the taxpayer must show that
the professional had the expertise and knowledge of the pertinent
facts to provide informed advice on the subject matter. David v.
Commissioner, 43 F.3d 788, 789-790 (2d Cir. 1995), affg. T.C.
Memo. 1993-621; Goldman v. Commissioner, 39 F.3d 402 (2d Cir.
1994), affg. T.C. Memo. 1993-480; Freytag v. Commissioner, supra;
Buck v. Commissioner, supra; Sacks v. Commissioner, T.C. Memo.
1994-217; Kozlowski v. Commissioner, T.C. Memo. 1993-430, affd.
without published opinion 70 F.3d 1279 (9th Cir. 1995); see also,
e.g., Friedman v. Commissioner, T.C. Memo. 1996-558; Gollin v.
Commissioner, T.C. Memo. 1996-454; Stone v. Commissioner, T.C.
Memo. 1996-230; Reimann v. Commissioner, T.C. Memo. 1996-84.
Reliance on representations by insiders, promoters, or
offering materials has been held an inadequate defense to
negligence. Goldman v. Commissioner, supra; Pasternak v.
Commissioner, 990 F.2d 893 (6th Cir. 1993), affg. Donahue v.
Commissioner, T.C. Memo. 1991-181; LaVerne v. Commissioner, 94
T.C. 637, 652-653 (1990), affd. without published opinion 956
F.2d 274 (9th Cir. 1992), affd. without published opinion sub
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