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file a gift tax return where attorneys advised the taxpayer that
no gift tax liability resulted from transfer of property at fair
market value) with Logan Lumber Co. v. Commissioner, supra at 853
(forgetting to file a tax return or failing through inadvertence
to see that it is filed does not constitute reasonable cause),
and Millette & Associates, Inc. v. Commissioner, 594 F.2d 121,
124-125 (5th Cir. 1979) ("responsibility for assuring a timely
filing is the taxpayer's"), affg. T.C. Memo. 1978-180.
Decedents were advised not to file a gift tax return by
Messrs. Tishler and Shillington in connection with the transfers
made in the Recapitalization. Messrs. Tishler and Shillington
concluded that the fair market values of the common stock
exchanged and the preferred stock received in the
recapitalization were equal, so that no taxable gift had been
made.
Respondent argues that the addition to tax is nonetheless
applicable because decedents did not rely on a formal appraisal
of FIC to determine whether they had made taxable gifts.
Respondent's argument is unwarranted on the facts of this case.
As we have discussed in our findings of fact, supra, Mr. Tishler
is highly experienced in restaurant franchising, and at the time
of the Recapitalization, had served as FIC's attorney for
approximately 15 years. Mr. Tishler's representation of FIC
included tax matters; for instance: (1) In connection with the
1980 Gifts, he had advised decedents to file gift tax returns,
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