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from an accountant concerning an investment was unreasonable
where the accountant had been retained by the investment
promoter); LaVerne v. Commissioner, supra; Rybak v. Commissioner,
supra.
Petitioners assert that the standard set forth by the Fifth
Circuit Court of Appeals in Heasley v. Commissioner, 902 F.2d 380
(5th Cir. 1990), revg. T.C. Memo. 1988-408, should be applicable
in this case. In Heasley, the court found that the taxpayers--
who were moderate-income, blue-collar investors with little
education or prior investment experience--were to be held to a
lower standard of due care when evaluating whether they were
negligent in making an investment. The court found that the
taxpayers, the Heasleys, were not negligent because, among other
reasons, they had relied on financial advisers. Id. at 384. The
financial consultant who had sold the Heasleys the investment had
referred them to an independent accountant for assistance in
preparing their tax return with respect to the investment. The
accountant, in turn, had reviewed the investment materials prior
to completing the return. The court noted that “nothing in the
record supports a finding that Smith [the accountant] did not
independently assess the Heasleys’ tax liability or that Danner
[the financial consultant] influenced Smith’s calculations.” Id.
at 384 n.9.
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