Malcolm I. Lewin and Trina Lewin - Page 35

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          relied on PI for the value of the recyclers.  An investor as                
          sophisticated as petitioner either learned or should have learned           
          the source and shortcomings of Becker’s valuation information               
          when he reported to them and “precisely” disclosed “what [he] had           
          done to investigate or analyze the transaction.”  Accordingly, we           
          hold that petitioners did not in good faith or reasonably rely on           
          Becker as an expert or qualified professional working in the area           
          of his expertise to establish the fair market value of the                  
          recyclers and the viability or bona fides of the SAB Foam                   
          transactions.  Becker never assumed such responsibility, and he             
          fully described the particulars of his investigation, taking care           
          not to mischaracterize it as “due diligence”.                               
               In the end, petitioners indirectly and Becker directly                 
          relied upon PI personnel for the value of the recyclers and the             
          economic viability of the SAB Foam transactions.  See Vojticek v.           
          Commissioner, T.C. Memo. 1995-444, to the effect that advice from           
          such persons “is better classified as sales promotion.”  As                 
          explained above, Becker did not have any education, special                 
          qualifications, or professional skills in plastics materials or             
          plastics recycling.  A taxpayer may rely upon his adviser’s                 
          advice and expertise (in this case accounting and tax advice)               
          only where such reliance is objectively reasonable, but it is not           
          reasonable or prudent to rely upon a tax adviser regarding                  
          matters outside his field of expertise or with respect to facts             

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