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Hoyt’s assertions. We disagree with petitioner that he had any
such misunderstanding of fact as would absolve him from liability
for the accuracy-related penalties.
In joining TBS 89-1 and claiming the accompanying losses for
1989 and 1991, petitioner relied exclusively on the assertions
made by Hoyt, members of the Hoyt organization, and other
participants in the Hoyt partnerships. Petitioner neither
verified, nor attempted to verify, any of that information by
speaking to someone independent of the Hoyt organization. While
Hoyt may have misled petitioner concerning his participation in
TBS 89-1, petitioner nevertheless was negligent in not properly
investigating Hoyt’s claims or otherwise inquiring into the
nature of the tax benefits that petitioner claimed on his return
with respect to his participation in TBS 89-1. See Keller v.
Commissioner, T.C. Memo. 2006-131; Barnes v. Commissioner, T.C.
Memo. 2004-266. We conclude that any misunderstanding that
petitioner may have had with respect to the facts surrounding his
participation in TBS 89-1, and any difficulty that he may have
had in obtaining all information necessary to evaluate TBS 89-1
and his participation therein, was not due to an honest
misunderstanding of fact such as would constitute a defense to
the imposition of the accuracy-related penalties; it was due to a
negligent disregard of fact.
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