G. Kierstead Family Holdings Trust, et al. - Page 6

          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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