- 29 -
Memo. 1997-325; Sann v. Commissioner, T.C. Memo. 1997-259. We
have found this argument to be unpersuasive in every one of those
cases. Petitioner's argument is not different in any substantive
manner, nor has petitioner relied on any legal authority not
previously considered in those cases. We will not revisit the
oil crisis argument. We hold that the oil crisis did not provide
a reasonable ground for petitioner to conclude that his
investment in the Plastics Recycling leasing programs would be
profitable.
B. Reliance on the Advice of Experts
Petitioner next contends that he is not liable for the
additions to tax for negligence because he relied on the advice
of experts.
Under some circumstances, a taxpayer may avoid liability for
negligence based on the taxpayer's reasonable reliance on a
competent professional adviser. See United States v. Boyle, 469
U.S. 241, 250-251 (1985); Freytag v. Commissioner, 89 T.C. 849,
888 (1987), affd. 904 F.2d 1011 (5th Cir. 1990), affd 501 U.S.
868 (1991). However, reliance on professional advice, standing
alone, is not an absolute defense to negligence; rather it is a
factor to be considered. See Freytag v. Commissioner, supra.
Petitioner claims that he relied on representations by
Bambara and Taggert regarding the uniqueness of the Sentinel
Page: Previous 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 NextLast modified: May 25, 2011