Eric A. and Jane C. Lanigan - Page 13

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            There is simply no evidence that the IRS representative had                                   
            available to her at that time any more information than that                                  
            which was filed with petitioners' returns; namely, some but not                               
            all of petitioners' Forms W-2 and 1099.  Petitioner could not say                             
            what records he took to the meeting with the IRS representative.                              
            He certainly did not suggest that he had with him at that time                                
            the Forms W-2 and 1099 for the unreported income.  For 1990 there                             
            were three items of unreported income totaling $11,668; for 1991                              
            there were 11 items of unreported income totaling $76,259.                                    
                  The IRS representative slightly reduced petitioners' income                             
            for the taxable year 1990.  While the IRS representative may have                             
            made some minor errors in some of the revisions she made to the                               
            partially filled-in Form 1040 for 1990, she accounted for the                                 
            income for all of the Forms W-2 and 1099 that were filed with the                             
            return, except for $88.94.  The IRS representative's minor                                    
            computational errors, however, have nothing to do with the                                    
            problem in this case, the unreported income.  Without verifying                               
            what information the IRS representative had available to her at                               
            that time and without showing that she knew about these items of                              
            unreported income, petitioners cannot shift their own                                         
            responsibilities to her shoulders. They were negligent in not                                 
            maintaining proper records of their W-2 and Form 1099 income.                                 
            They were negligent in failing to assure that the return                                      
            preparer, albeit an IRS employee, had the necessary information                               






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