Gary and Johnean Hansen - Page 18

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          unique nor exceptional in that petitioners’ situation mirrors               
          that of numerous taxpayers who claimed tax shelter deductions in            
          the 1980s and 1990s, obtained the tax advantages, promptly forgot           
          about their “investment”, and now realize that paying their taxes           
          may require a change of lifestyle.11  See Clayton v.                        
          Commissioner, T.C. Memo. 2006-188; Barnes v. Commissioner, T.C.             
          Memo. 2006-150.                                                             
               We also believe that compromising petitioners’ case on                 
          grounds of public policy or equity would not promote effective              
          tax administration.  While petitioners portray themselves as                
          victims of Hoyt’s alleged fraud and respondent’s alleged delay in           
          dealing with Hoyt, they take no responsibility for their tax                
          predicament.  We cannot agree that acceptance by respondent of              
          petitioners’ $90,258 offer to satisfy their estimated $260,143              
          tax liability would enhance voluntary compliance by other                   
          taxpayers.  A compromise on that basis would place the Government           

               11 Of course, the examples in the regulations are not meant            
          to be exhaustive, and petitioners’ situation is not identical to            
          that of the taxpayers in Fargo v. Commissioner, 447 F.3d 706, 714           
          (9th Cir. 2006), affg. T.C. Memo. 2004-13, regarding 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 Hoyt’s shelters to be culpable of           
          negligence, see, e.g., Keller v. Commissioner, T.C. Memo. 2006-             
          131, nor prevented the Courts of Appeals for the Sixth, Ninth,              
          and Tenth Circuits from affirming our decisions to that effect in           
          Hansen v. Commissioner, 471 F.3d 1021 (9th Cir. 2006), affg. T.C.           
          Memo. 2004-269; Mortensen v. Commissioner, 440 F.3d 375 (6th Cir.           
          2006), affg. T.C. Memo. 2004-279; and Van Scoten v. Commissioner,           
          439 F.3d 1243 (10th Cir. 2006), affg. T.C. Memo. 2004-275.                  

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