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precluded by the application of estoppel or a similar doctrine
from attacking the validity of the forms they signed, even if
they later prove they were incompetent when they signed them.
See Hollman v. Commissioner, 38 T.C. 251, 260 (1962); Dale v.
Commissioner, T.C. Memo. 1982-654. However, those cases (and
others cited by respondent) differ from the one before us. They
involve consents signed by the taxpayer, not by a third party
purporting to act on behalf of the taxpayer. More importantly,
in those cases there was no evidence that the Commissioner had
either actual notice or reason to know of the taxpayer's
incapacity.
Apparent authority, not otherwise terminated, ends when the
third person has notice of the termination of the agent's
authority. 1 Restatement, Agency 2d, sec. 125 (1957). A third
person has notice when he knows, has reason to know, should know,
or has been given a notification of the occurrence of an event
from which, if reasonable, he would draw the inference that the
principal does not consent to have the agent so act for him, that
the agent does not consent so to act for the principal, or that
the transaction has become impossible of execution. 1
Restatement, Agency 2d, sec. 135 (1957). Revocation of the prior
power of attorney need not be expressed; it can be implied from
words and conduct. Whiting v. Marine Midland Bank-Western, 80
Misc. 2d 871, 365 N.Y.S.2d 628, 643 (Sup. Ct. 1975); see also
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