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maximum value of $50,000 each. Petitioner, nevertheless,
contends that he was reasonable in claiming deductions and
credits with respect to the partnership on his 1982 Federal
income tax return based upon each recycler's having a value of
$1,162,667. To support this contention petitioner argues that he
discussed the investment with his advisers and reviewed the
offering memorandum. He alleges that his investigatory actions
were commensurate with the size of his investment.
Under some circumstances a taxpayer may avoid liability for
the additions to tax under section 6653(a)(1) and (2) if
reasonable reliance on a competent professional adviser is shown.
United States v. Boyle, 469 U.S. 241, 250-251 (1985); Freytag v.
Commissioner, 89 T.C. 849, 888 (1987), affd. 904 F.2d 1011 (5th
Cir. 1990), affd. 501 U.S. 868 (1991). Reliance on professional
advice, standing alone, is not an absolute defense to negligence,
but rather a factor to be considered. Freytag v. Commissioner,
supra. In order for reliance on professional advice to excuse a
taxpayer from negligence, the taxpayer must show that the
professional had the requisite expertise, as well as knowledge of
the pertinent facts, to provide informed advice on the subject
matter. David v. Commissioner, 43 F.3d 788, 789-790 (2d Cir.
1995), affg. T.C. Memo. 1993-621; Goldman v. Commissioner, supra;
Freytag v. Commissioner, supra.
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