Franklin W. Briggs - Page 51




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         records were inadequate, partly because of petitioners’ practice             
         of commingling funds and disregarding corporate formalities.  We             
         have determined that petitioners acted with fraudulent intent as             
         regards the omitted gas rebate income.                                       
              Although petitioners have not expressly argued that they had            
         substantial authority or made adequate disclosure within the                 
         meaning of section 6661(b)(2)(B), on brief they argue that they              
         relied on Selfe v. United States, 778 F.2d at 769.  Any such                 
         reliance was misplaced.  As previously discussed, the Morrises               
         did not even personally guarantee the loans in question.                     
         Moreover, petitioners have failed to establish the outstanding               
         balance, if any, of loans between AMI and Towers Development for             
         any year in issue.  Accordingly, we conclude that Selfe and its              
         progeny are “so dissimilar that they must be discarded as                    
         providing no substantial authority for the tax returns filed in              
         this case.”  Osteen v. Commissioner, 62 F.3d 356, 360 (11th Cir.             
         1995), revg. on this point T.C. Memo. 1993-519.  Moreover,                   
         petitioners have not shown substantial authority or adequate                 
         disclosure for other positions taken on their returns.  Opinions             
         rendered by tax professionals are not substantial authority.  See            
         sec. 1.6661-3(b)(2), Income Tax Regs.                                        
              We sustain respondent’s determination on this issue.                    










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