Charles A. Greene and Christine J. Greene - Page 18

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          Petitioners' Arguments                                                      
               Petitioners raise a plethora of arguments against their                
          liability for the negligence addition to tax.  Among the                    
          arguments raised are that petitioners:  (a) Were                            
          "unsophisticated" investors with no formal training or work                 
          experience in investments; (b) relied on their accountant,                  
          Corman, in making the investment; (c) having obtained the                   
          "approval" of their accountant, should not be required to conduct           
          a costly, independent investigation of the investment; (d)                  
          determined that the investment in oil and gas was by its nature             
          "risky", profit-motivated, and "small" with a potentially high              
          rate of return, and did not offer tax benefits that were "too               
          good to be true".                                                           
               Whether a taxpayer had a subjective profit motive is not               
          dispositive in determining that he acted negligently.  Klieger v.           
          Commissioner, T.C. Memo. 1992-734.  Under some circumstances,               
          however, a taxpayer may avoid liability for the additions to tax            
          for negligence under section 6653(a) if reasonable reliance on a            
          competent professional adviser is shown.  Leonhart v.                       
          Commissioner, 414 F.2d 749, 750 (4th Cir. 1969), affg. T.C. Memo.           
          1968-98; Freytag v. Commissioner, 89 T.C. 849, 888 (1987), affd.            
          904 F.2d 1011 (5th Cir. 1990), affd. 501 U.S. 868 (1991).  Such             
          reliance is not an absolute defense to negligence but is merely a           
          factor to be considered.  Freytag v. Commissioner, supra.                   

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