Thomas H. Foulds and Helen K. Foulds v. Commissioner of Internal Revenue

94 F.3d 651 78 A.F.T.R.2d 96 -6200, 96-2 USTC P 50,500 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. Thomas H. FOULDS and Helen K. Foulds, Petitioners-Appellants, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee. No. 95-70312. United States Court of Appeals, Ninth Circuit. Submitted March 14, 1996. * Decided Aug. 15, 1996. Before: CHOY, SNEED, and FERGUSON, Circuit Judges. 1 MEMORANDUM ** 2 Taxpayers Thomas and Helen Foulds 1 (the Foulds) appeal the tax court's order imposing penalties for the negligent underpayment of taxes. 26 U.S.C. § 6653 (a) (repealed 1989). We have jurisdiction pursuant to 26 U.S.C. § 7482 (a) and affirm. 3 The Foulds were among over 3000 taxpayers who participated in straddle transactions operated by First Western Government Securities Inc. (First Western). The details of the investment program were fully explained in the Fifth Circuit decision Freytag v. Commissioner which found the transactions were not bona fide as they were…