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Petitioners argue that the Court should vacate that
portion of Robertson I relating to the additions to tax
under sections 6653(a) and 6661 and hold that petitioners
are not liable for those additions to tax. As to the
additions under section 6653(a)(1) and (2), petitioners
assert that the Court should hold that petitioners are
not subject to liability under those provisions because:
(1) Petitioners reasonably relied in good faith on the Tax
Opinion contained in the Investment Memorandum and on the
tax advice of one of their partners, Mr. Gerver; (2) they
"conducted an independent evaluations [sic] [of the
investment] that corroborated the information provided in
the memorandum, the Projections, and the Appraisal"; (3)
the information provided to petitioners and the other
unitholders reasonably could not have been expected to
suggest that the unitholders did not have a reasonable
prospect of qualifying for the expected tax consequences
of the transaction; and (4) at the time they entered into
the investment there was a substantial market for equity
investments in computer equipment leasing transactions with
many offering tax benefits exceeding those anticipated from
the investment in issue.
As to the additions to tax under section 6661, peti-
tioners assert that the Court should hold that petitioners
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