- 30 -
Cir. 1992), affd. without published opinion sub nom. Cowles v.
Commissioner, 949 F.2d 401 (10th Cir. 1991). Advice from such
individuals "is better classified as sales promotion". Vojticek
v. Commissioner, T.C. Memo. 1995-444.
Pleas of reliance have also been rejected when neither the
taxpayer nor the advisers purportedly relied on by the taxpayer
knew anything about the nontax business aspects of the
contemplated venture. See Freytag v. Commissioner, supra; Beck
v. Commissioner, 85 T.C. 557 (1985). Thus, petitioner’s
professed reliance on Gordon’s advice was not reasonable. See
Patin v. Commissioner, 88 T.C. 1086, 1131 (1987), affd. without
published opinion 865 F.2d 1264 (5th Cir. 1989), affd. sub nom.
Gomberg v. Commissioner, 868 F.2d 865 (6th Cir. 1989), affd. sub
nom. Skeen v. Commissioner, 864 F.2d 93 (9th Cir. 1989), affd.
per curiam without published opinion sub nom. Hatheway v.
Commissioner, 856 F.2d 186 (4th Cir. 1988); Klieger v.
Commissioner, T.C. Memo. 1992-734.
Petitioner claims that he did not know that Gordon was
financially interested in Dickinson. Yet in signing the
subscription agreement, petitioner assumed that Gordon was the
purchaser representative, and the offering memorandum clearly
stated that Dickinson would pay “fees of purchaser
representatives and selling commissions” from the proceeds of the
offering in an amount equal to 10 percent of the aggregate price
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