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exceptional in that his situation mirrors those of numerous other
taxpayers who claimed tax shelter deductions in the 1980s and
1990s. See Barnes v. Commissioner, T.C. Memo. 2006-150.
Of course, the examples in the regulations are not meant to
be exhaustive, and petitioner has a more sympathetic case than
the taxpayers in Fargo v. Commissioner, 447 F.3d at 714, for whom
the Court of Appeals for the Ninth Circuit noted that “no
evidence was presented to suggest that Taxpayers were the subject
of fraud or deception”. Such considerations, however, have not
kept this Court from finding investors in the Hoyt tax shelters
to be liable for penalties and interest, nor have they prevented
the Courts of Appeals for the Sixth and Tenth Circuits from
affirming our decisions to that effect. See Mortensen v.
Commissioner, 440 F.3d 375 (6th Cir. 2006), affg. T.C. Memo.
2004-279; Van Scoten v. Commissioner, 439 F.3d 1243 (10th Cir.
2006), affg. T.C. Memo. 2004-275.
Mr. Vander Linden testified that he considered all of Ms.
Merriam’s and petitioner’s assertions, but that the “equitable
facts” did not affect his final determination. Mr. Vander Linden
also testified that he considered Ms. Merriam’s February 4, 2004
letter, in which Ms. Merriam addresses petitioner’s “equitable
facts” at length. Additionally, Mr. Vander Linden read and
considered many of the cases cited in that letter. Likewise, the
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