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demonstrates that the individual who seeks such relief has actual
knowledge at the time the individual signed the return of any
item giving rise to a deficiency.
According to petitioner, he was unaware that Ms. Gutierrez’s
shareholder pro rata share of CWS’s income was not properly
reported on their joint Federal income tax return for either year
in issue. Petitioner further maintains that Ms. Gutierrez, as
the corporation’s sole shareholder and president, rather than
himself, ran CWS and had exclusive control over the corporation
and corporate funds. However, petitioner’s professional
background, his involvement in the construction industry over the
years, and his connection with CWS greatly undermine petitioner’s
claim on this point, which, for the following reasons, we reject.
Petitioner organized CWS in 1984. He is a certified welder
by profession, and CWS is a welding services company that
functioned through petitioner. Prior to the organization of CWS,
petitioner was involved in other welding operations. Ms.
Gutierrez is not a welder and, except for her involvement with
CWS through her relationship with petitioner, has no practical
experience in the welding services industry. Ms. Gutierrez’s
primary vocational interest before, during, and after the years
in issue was writing and publishing romance novels. She came to
be sole shareholder and president of CWS only because of her
relationship with petitioner. Furthermore, she was CWS’s sole
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