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the negligence additions to tax. 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. on another
issue 501 U.S. 868 (1991). The advice must be from competent and
independent parties, not from the promoters of the investment.
LaVerne v. Commissioner, 94 T.C. 637, 652 (1990), affd. without
published opinion sub nom. Cowles v. Commissioner, 949 F.2d 401
(10th Cir. 1991), affd. without published opinion 956 F.2d 274
(9th Cir. 1992); Rybak v. Commissioner, 91 T.C. 524, 565 (1988).
Petitioners analogize their case to the case of Anderson v.
Commissioner, 62 F.3d 1266, 1271 (10th Cir. 1995), affg. T.C.
Memo. 1993-607. In Anderson, the taxpayer relied on both an
investment adviser and an accountant in making his investment.
The court found that reliance on the investment adviser, who
received a commission for selling the investment to the taxpayer,
was reasonable under the circumstances of the case. Cf., e.g.,
Carmena v. Commissioner, T.C. Memo. 2001-177 (financial adviser
receiving commissions for sale of investments had inherent
conflict of interest in advice given to investors). However, the
court stressed that the investment adviser--an independent
insurance agent and registered securities dealer--was a good
friend of the taxpayer and was not affiliated with the investment
the taxpayers entered into. Anderson v. Commissioner, supra at
1271.
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