- 34 -
have put Nancy on notice that there was a tax problem or that she
should inquire as to whether there was a tax problem.
The 1981 tax return presents two difficulties for Nancy: (1)
She did not sign it, and (2) if she had signed it, then she would
or should have seen the $1,600,000 claimed deduction. As can be
seen from table 2, supra, the $1,600,000 deduction and Schedule C
loss, and the resultant minus $1,252,785 adjusted gross income,
are far larger than any other amounts on the 1981 tax return, and
several times as large as any amounts on the 1979 and 1980 tax
returns that Nancy signed. See Bokum v. Commissioner, 94 T.C. at
147-148.
For whatever reason, Sheldon did not bring the 1981 tax
return home for Nancy to sign, and, although the tax return was
signed with Nancy's name, Nancy did not sign the 1981 tax return.
Ordinarily, we would conclude that Sheldon's failure to present
the 1981 tax return to Nancy for signing should, like "the
incident of the dog in the night-time",9 have alerted Nancy that
9 You consider that to be important? he asked.
Exceedingly so.
Is there any point to which you would wish to draw my
attention?
To the curious incident of the dog in the night-time.
The dog did nothing in the night-time.
That was the curious incident, remarked Sherlock
Holmes.
Doyle, "Silver Blaze", Sherlock Holmes: The Complete Novels
and Stories (vol. 1) 455, 472 (Bantam Books 1986).
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