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own checkbook. In 1984, Thorpe was 25 years old and anxious to
receive distributions from the estate.
Around October 1984, Thorpe consulted Cheryl Scanlon-Hull
(Scanlon-Hull), a certified public accountant, with respect to
the proposed reformation. Scanlon-Hull discussed with Thorpe the
tax effects to the estate of converting payments due from
petitioner to the estate under the buy-sell agreement into a
bonus to be paid by INI. Scanlon-Hull advised Thorpe that the
buy-sell agreement was binding and could not be converted to a
bonus and that a bonus paid to the estate would be taxable income
to the estate. Thorpe told petitioner that the estate would not
agree to petitioner’s proposed modification of the agreement
because it would create a tax burden for the estate.
Subsequently, but before the end of 1984, petitioner called
Scanlon-Hull to discuss her advice to Thorpe respecting the tax
effects of converting petitioner’s obligation to pay pursuant to
the buy-sell agreement into a bonus payable by INI. Petitioner
told Scanlon-Hull he disagreed with her conclusions, and that he
had discussed the tax effects with Cutshall, who had advised him
that there would be no adverse tax consequences to the estate.
Petitioner did not raise the matter again with Thorpe.
In December 1984, INI made a payment to Burke's estate in
the amount of $50,000. INI made another payment to Burke’s
estate in 1986 in the amount of $17,500. Petitioner asserts that
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