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1. Petitioners’ Investment Experience and Sophistication.
Petitioners argue that their lack of education and their
lack of investment experience are factors supporting their claim
that they were not negligent in investing in Whitman.
Petitioners compare their backgrounds with those of the taxpayers
in Dyckman v. Commissioner, supra, and Zidanich v. Commissioner,
supra.
In Dyckman and Zidanich we held for the taxpayers on the
issue of negligence based on special and unusual circumstances.
One of the circumstances favoring taxpayers was their complete
lack of sophistication in investment matters. In Dyckman v.
Commissioner, supra, the taxpayers were a carpet salesman and an
elementary school teacher. Their combined net worth was $50,000.
Until the year in issue, their investment experience had been
limited to bank accounts, a few certificates of deposit, and
securities financed through withholdings from their paychecks for
investment through employer plans. Id. In Zidanich v.
Commissioner, supra, Mr. Zidanich was a steel worker and Mrs.
Zidanich was a legal secretary. Prior to their investment at
issue, their only investments were in stocks and bonds financed
through withholding from Mr. Zidanich’s paychecks and purchased
through a company plan. Id.
Petitioner argues that his education level is similar to
that of most of the taxpayers in the Dyckman and Zidanich cases,
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