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whether the taxpayer adequately disclosed enough relevant data
concerning the treatment of the item to alert the Commissioner to
a potential controversy. See Estate of Reinke v. Commissioner,
46 F.3d 760 (8th Cir. 1995), affg. T.C. Memo. 1993-197; Schirmer
v. Commissioner, 89 T.C. 277, 285-286 (1987). We find from
petitioner's returns that such was the case.
Respondent also asserts that the adequate disclosure test is
inapplicable because petitioner did not have a reasonable basis
to sustain his position. We disagree. We do not believe that
petitioner's position was unreasonable. Petitioner has an eighth
grade education, and, under the facts herein, we believe that it
was reasonable for him to rely on Mr. Trader's preparation of his
tax returns. Inasmuch as the other disputed amounts were also
disclosed similarly, we hold for petitioner on this issue.
In reaching our holdings herein, we have considered all
arguments made by the parties for contrary holdings and, to the
extent not discussed above, find them to be irrelevant or without
merit.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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