Gilfred B. and Patricia Swartz - Page 14




                                       - 13 -                                         
          the partnership’s position on tax issues.  Thus, we do not accept           
          petitioners’ assertion that Mr. Trimboli’s reliance on the                  
          opinion letter should itself insulate petitioners from the                  
          negligence additions to tax.                                                
               Because Mr. Trimboli was not an independent adviser,                   
          petitioners’ reliance on any advice from him was not reasonable.            
          Bello v. Commissioner, T.C. Memo. 2001-56 (reliance on advice               
          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 point to 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.  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,            






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011