- 21 - 1982. If petitioner had made a examination of the returns, she would have noticed the deductions, but we need to determine whether a reasonably prudent taxpayer in petitioner's position would have inquired further. In the instant case, besides writing checks for the household expense, she was uninvolved in the family's finances. She was unaware of Mr. Aude's salary during the years at issue. When petitioner signed the returns, she was aware of the existence of the Magnum transaction, but she never saw the investment papers or knew the amount of Mr. Aude's capital contributions in Magnum. Further, she was unaware of its tax shelter nature. There were also no unexplained lavish or unusual expenditures around this time which should have aroused petitioner's curiosity. In sum, there were no facts present which would have caused petitioner to harbor doubts about the accuracy of the returns. In signing the returns, petitioner neither reviewed the returns nor questioned Mr. Gruys or Mr. Aude regarding the returns. While petitioner's duty cannot be relieved based solely on petitioner's reliance on her preparer, it is a factor to be considered in light of the other circumstances. See Hayman v. Commissioner, supra at 1262. In the preparation of the tax returns, petitioner would submit her information regarding the household expenses to Mr. Gruys, but she was not present when Mr. Aude furnished his information to Mr. Gruys. Further, Mr. GruysPage: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
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