Bernice M. and Stanley M. Ulanoff - Page 32




                                       - 32 -                                         

          claimed.  Cf. Hull v. Commissioner, T.C. Memo. 1991-582.  Under             
          these circumstances, petitioner's alleged reliance on his                   
          accountant does not relieve petitioner of liability for the                 
          additions to tax for negligence.                                            
               C.  Concern for the Environment                                        
               Finally, petitioner directs our attention to his interest in           
          recycling and his desire to conserve natural resources.  At                 
          trial, petitioner described in detail his efforts to recycle.               
          For instance, petitioner pointed out:                                       
                    As a child of the great depression, * * * I firmly                
               believed in eliminating waste, recycling and protecting                
               valuable and diminishing natural resources.  For                       
               example, I have used the reverse side of incoming mail                 
               and of my old manuscripts for years.  I reuse incoming                 
               manila envelops and packaging.  I shut off lights,                     
               heat, water, doors and windows that are not being used.                
               We have no reason to doubt petitioner's testimony in this              
          regard.  Yet, we fail to see how petitioner's concerns regarding            
          the environment make his investments in two partnerships, both of           
          which were designed to shelter income from taxation and produce             
          other tax benefits, any more reasonable.  Although petitioner's             
          concern for the environment may have provided some motivation to            
          consider the Plastics Recycling leasing programs, petitioner                
          should have thereafter reasonably investigated his prospective              
          investments.  As already noted, independent investigation would             
          have revealed the true nature of the Sentinel recycling programs            
          as economic shams.                                                          





Page:  Previous  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  Next

Last modified: May 25, 2011