Frances L. and Gary L. Rambacher - Page 9

          the circumstances.  Neely v. Commissioner, 85 T.C. 934, 947                 
          (1985).  Petitioners bear the burden of proving that no part of             
          the underpayment for the year in issue was due to negligence or             
          intentional disregard of rules or regulations.  Rule 142(a);                
          Bixby v. Commissioner, 58 T.C. 757 (1972).                                  
               Petitioners contend that they exercised due care with                  
          respect to their investment in the Barrister partnerships because           
          they reasonably relied upon the information contained in the                
          offering materials.  Petitioners also contend that they were not            
          negligent because they reasonably expected that the partnerships            
          might be profitable.  Petitioners do not assert that they relied            
          on any representations as to the tax treatment of the items                 
          passed through to them by the partnerships; rather their argument           
          seems to be that if they were not imprudent in investing in the             
          partnerships, then they were not negligent in claiming the                  
          deductions and investment tax credit basis flowing therefrom.               
          Assuming arguendo that we agreed with this conclusion,                      
          petitioners have not established that they acted reasonably with            
          respect to their investments in Series 98 and Series 124.                   
               Petitioner testified that he completed a substantial                   
          evaluation of the potential profitability of the Barrister                  
          partnerships.  Petitioner, however, relied solely on the                    
          information contained in the offering materials, particularly the           
          cash-flow analyses.  Reliance on representations by insiders,               

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