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the section 6659 addition to tax. However, as we explained above
in finding petitioners liable for the negligence additions to
tax, petitioner's purported reliance on Bach was not reasonable.
Bach did not have any education or experience in plastics
materials or plastics recycling. He acknowledged that he was not
qualified to assess the machines and that his technical
limitations hindered his investigation at Hyannis. In the end,
neither petitioner nor Bach in good faith investigated the fair
market value of a Sentinel EPE recycler, or the underlying
viability, financial structure, and economics of the Plymouth
transaction.
In support of the contention that petitioner acted
reasonably, petitioners cite Mauerman v. Commissioner, 22 F.3d
1001 (10th Cir. 1994), revg. T.C. Memo. 1993-23. However, the
facts in the Mauerman case are distinctly different from the
facts of this case. In Mauerman, the Court of Appeals for the
Tenth Circuit held that there was an abuse of discretion on the
part of the Commissioner 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 relied
upon independent attorneys and accountants for advice as to
whether payments were properly deductible or capitalized. The
advice relied upon by the taxpayer in Mauerman was within the
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