Daniel C. Greer and Winnie L. Greer - Page 18
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Commissioner, 60 T.C. 728, 740 (1973). The taxpayer’s reliance
upon a qualified adviser is also a factor, and the specific
expertise of the adviser is considered. Patin v. Commissioner, 88
T.C. 1086, 1130-1131 (1987), affd. sub nom. Hatheway v.
Commissioner, 856 F.2d 186 (4th Cir. 1988), affd. sub nom. Skeen
v. Commissioner, 864 F.2d 93 (9th Cir. 1989), affd. without
published opinion 865 F.2d 1264 (5th Cir. 1989), affd. sub nom.
Gomberg v. Commissioner, 868 F.2d. 865 (6th Cir. 1989).
Mr. Greer had no prior experience in the recycling business.
He relied upon the purported value of the Sentinal EPS Recyclers
set forth in the offering memorandum. He made no attempt to
verify the value of the recyclers. Given the nature of the tax
benefits claimed, this omission supports respondent’s assertion of
negligence. Rybak v. Commissioner, 91 T.C. 524, 565 (1988). Mr.
Greer contacted his longstanding tax accountant, and the
accountant warned Mr. Greer that the transaction was fairly
aggressive. Rather than seek a written opinion from his
accountant on the validity of the tax benefits, Mr. Greer relied
upon HG, the investment brokerage firm that brought him the
transaction. Obviously, the brokerage firm received a commission.
In addition, the individuals at HG who sold the Madison
transaction to Mr. Greer did not have specialized tax expertise.
Mr. Greer asserts that HG came recommended by his employer.
Regardless, Mr. Greer’s business experience prior to 1982 was such
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Last modified: November 10, 2007