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tax professional.
In Heasley, the U.S. Court of Appeals for the Fifth Circuit
held that the unsophisticated taxpayers in that case were not
required independently to investigate investment opportunities.
Heasley v. Commissioner, supra at 383-384. The court’s holding
does not support petitioners’ claim that they were not negligent
because, in the instant case, respondent’s adjustments were to
petitioners’ unreported income and overstated deductions.
Finally, Streber does not support petitioners’ claim. In
that case, the taxpayers relied on the advice of their attorney
in treating joint venture income as a gift from their father.
The U.S. Court of Appeals for the Fifth Circuit held that the
taxpayers acted with reasonable care because of their youth and
inexperience in business matters and the fact that they relied on
their attorney. See Streber v. Commissioner, supra at 222. In
contrast, petitioners did not rely on an attorney and did not
show that they were unsophisticated in business matters.
As stated above, petitioners did not have reasonable cause
for their failure to file timely their 1994 and 1995 returns. We
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