Nicholas P. Ruggiero and Annette M. Ruggiero - Page 2




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          the underpayment of tax attributable to negligence.  The                    
          additions to tax are "affected items" in that they were                     
          determined by respondent with reference to a deficiency owing               
          from petitioners as a result of adjustments to partnership items            
          appearing on a 1983 partnership return.  The issues for decision            
          are:  (1) Whether the statute of limitations prohibits the                  
          assessment of the additions to tax; and if it does not, (2)                 
          whether part of petitioners' underpayment of tax was due to                 
          negligence or intentional disregard of rules or regulations.                
               Some of the facts have been stipulated and are so found.               
          The exhibits received into evidence are incorporated herein by              
          reference.  At the time the petition in this case was filed,                
          petitioners were residing in Lanoka Harbor, New Jersey.                     
                                  FINDINGS OF FACT                                    
               Nicholas Ruggiero (petitioner), a licensed mortgage banker             
          and realtor, is a high school graduate who attended college for a           
          year.  His college courses included one course in accounting for            
          one year.                                                                   
          Investment Advice                                                           
               Sometime in 1983, petitioners went to a Mr. Dan Desmond                
          (Desmond), an insurance agent, to purchase "some small like life            
          insurance" for petitioner Annette Ruggiero.  Desmond also showed            
          petitioners some documents indicating that he was a "certified              
          financial planner".  Desmond discussed petitioners' insurance               






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