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two teenage children is the same in 1980 and 1981 as it was in
1982, except that for 1980 and 1981 they did acknowledge receipt
of the stock on the stock register. However, they never received
any benefits from the stock and did not receive their pro rata
distribution when the assets of the company were sold. In other
words, the stock decedent gave to his two grandchildren was not
treated by their father, John Cidulka, as stock belonging to
them. They were not shown as stockholders for purposes of
corporate distributions. Based on this record, we conclude that
in 1980 and 1981, as in 1982, the gifts of stock to John
Cidulka's two children were, in effect, a gift to their father
and certainly not in substance a gift to the children. Again, we
point out that at the time of the trial, John Joseph and Laura
were adults but were not called as witnesses. In each of the
years 1980 and 1981 decedent was entitled to only one gift tax
exclusion.
The final issue in this case is whether petitioner is liable
for the additions to tax for failure to file a 1982 gift tax
return and for negligence in not reporting the gifts made to John
Cidulka in 1982. Petitioner contends that there was reasonable
cause for decedent's failure to file a gift tax return in 1982,
since his advisers, including his accountant and attorneys, had
informed him that the gifts were not of sufficient value to
require a return to be filed. The only testimony with respect to
the advice given to decedent as to his gift tax liability is
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