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Internal Revenue Service (an enrolled agent) and has prepared tax
returns. Although petitioner has occasionally consulted with his
brother, by telephone, on “complex” tax matters, petitioner has
never asked his brother to prepare petitioners’ tax returns.
Also, petitioner has never disclosed details regarding his own
personal financial status to his brother. However, petitioner
has asked his brother for investment advice, and his brother has
offered such advice. For example, it was petitioner’s brother
who recommended that petitioner invest in University Associates
in 1978, and it was petitioner’s brother who put petitioner in
touch with Sam Winer in 1979. Contact with Winer led petitioner
to invest in Winer-promoted oil and gas partnerships, including
Winer Development Co., from 1979 through 1981. These various
Winer-promoter partnerships produced tax benefits.
In September 1982, petitioner contacted Winer and expressed
an interest in investing in another oil and gas partnership.
Winer recommended instead that petitioner invest in the plastics
recycling industry, and Winer provided petitioner with a copy of
the offering memorandum for the Whitman partnership. See supra
C. In promoting the investment, Winer stated that petitioner
would receive tax benefits.
Petitioner looked at the offering memorandum. Petitioner
understood that if he invested in Whitman, then Winer, as
promoter, would receive a commission based on petitioner’s
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