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hold himself out as a tax attorney, nor does he prepare tax
returns. Mr. Kallman provided petitioners with limited tax
advice about the tax treatment of business trusts. He also
provided general tax information that business expenses, but not
personal expenses, were allowed as deductions. Mr. Kallman was
careful to qualify any tax advice by telling petitioners to
consult their tax attorney and accountant. Therefore,
petitioners did not rely on Mr. Kallman’s advice in the
preparation and filing of their Federal individual and trust
income tax returns.
On the advice of Mr. Kallman, petitioners consulted David
Carter, an attorney and C.P.A., regarding tax issues of the
trusts. Petitioner Glenn Kierstead testified that Mr. Carter
“said he was very comfortable with [the trusts].” Though
petitioners listed Mr. Carter as a potential witness, he did not
testify at trial. Petitioners introduced no evidence as to Mr.
Carter’s qualifications as a tax expert other than Mr. Kallman’s
testimony that he was an attorney with a C.P.A. background. No
evidence has been submitted of any specific tax advice provided
by Mr. Carter relating to petitioner’s assignment of lifetime
earnings to the trusts or the allowance of deductions for
personal expenses. For these reasons, petitioners failed to
prove that Mr. Carter was a competent tax professional and that
petitioners were justified in relying on his opinion.
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