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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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