Estate of Robert E. Sympson, Deceased, Elizabeth C. Sympson Personal Representative and Elizabeth C. Sympson - Page 5

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          evasiveness or deceit."  Bliss v. Commissioner, 59 F.3d 374, 379            
          (2d Cir. 1995), affg. T.C. Memo. 1993-390.                                  
               We feel somewhat constrained in our findings, because, in              
          addition to stating that it would be unconscionable to hold Mrs.            
          Sympson liable, the Court of Appeals commented on some of the               
          evidence which would bear on our analysis.  For instance, we                
          would ordinarily have given weight to the Sympsons' increasing              
          wealth and expenditures during the years in issue in contrast to            
          the amounts reported on the income tax returns.  From 1982                  
          through 1987, the Sympsons reported taxable income as follows:              
          Year            Amount                                                      
          1982          ($22,561)                                                     
          1983            32,266                                                      
          1984            25,111                                                      
          1985              -0-                                                       
          1986              -0-                                                       
          1987              -0-                                                       
          Ordinarily, such a disparity would be a factor putting one on               
          notice and would support a finding that a spouse had reason to              
          know of an understatement.                                                  
               We feel instructed, however, by the court's finding that               
          "there is substantial evidence that the lifestyle of the Sympsons           
          during this period did not change."  Estate of Sympson v.                   
          Commissioner, 75 AFTR 2d at 95-2257, 95-1 USTC par. 50,276, at              
          88,021.  The Court of Appeals also said:                                    
                    In contrast to this evidence [i.e. of increasing                  
               expenditures], Mrs. Sympson testified that, while the                  
               family lifestyle gradually improved each year                          

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