- 15 - There is no evidence in the record that Modern’s accountants and attorney possessed, or reasonably appeared to possess, sufficient relevant expertise to warrant reliance on their judgment. The only evidence petitioners did present on this subject would support an inference to the contrary. Shindel testified that Tompkins, the accountant employed by Modern to handle most return preparation, had failed the C.P.A. examination. Whether Klein’s field of legal expertise included tax matters remains unclear. No one associated with Modern impressed Shindel as being competent to handle the tax questions at issue. There is no evidence that expert advice regarding the foreign payments was solicited by or on behalf of any of petitioners before Shindel conducted his investigation. The record does not establish when Shindel sought and received the expert tax attorneys’ advice: at one point his testimony fixes the start of his consultations with them in early 1990, and at another point, in late 1991 or 1992. The Forms 1042 for the last year of payments would have been due by March 15, 1992. Sec. 1.1461-2(b)(1), Income Tax Regs. There is no record of what the tax attorneys advised Shindel, nor to which payments and which tax years the advice related. Shindel’s testimony is ambiguous as to the identity of the clients on whose behalf he consulted the tax attorneys. There is no evidence that petitioners solicited, authorized, or were cognizant of Shindel’sPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011