William G. and Debra C. Kellen - Page 26




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         jojoba, and I–-and that was the primary reason I invested in it.”            
              Petitioner also contends that he reasonably relied on advice            
         from a professor at the University of California at Riverside, a             
         Dr. Yermanos.  This individual did not testify at trial, so we do            
         not know first hand what advice he may have given or on what                 
         basis such advice may have been rendered.21  However, the record             
         suggests that petitioner never compensated Dr. Yermanos for his              
         time and that Dr. Yermanos may have merely opined on whether the             
         jojoba industry as a whole could become profitable.22  There is              
         nothing in the record to suggest that petitioner ever discussed              
         the details of San Nicholas with Dr. Yermanos or that Dr.                    
         Yermanos even knew about the existence of that partnership.  In              
         short, petitioner’s testimony concerning Dr. Yermanos is too                 
         amorphous for us to conclude that whatever advice Dr. Yermanos               
         may have provided was sufficiently informed to absolve petitioner            
         from liability for the additions to tax for negligence.                      
              Finally, petitioner relies heavily on Krause v.                         
         Commissioner, 99 T.C. 132 (1992), affd. sub nom. Hildebrand v.               
         Commissioner, 28 F.3d 1024 (10th Cir. 1994).  That case, however,            
         is distinguishable on its facts.                                             


               21 We note that no mention is made of a Dr. Yermanos in Utah           
          Jojoba I Research v. Commissioner, T.C. Memo. 1998-6.                       
               22 Remarkably, Dr. Yermanos apparently admitted to                     
          petitioner that he, i.e., Dr. Yermanos, had not been successful             
          in convincing anyone to enter the field of jojoba.                          





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