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because of my schedule." Petitioner's request was granted, and
the return was eventually prepared by petitioner on December 22,
1989.
D. Petitioner's Dealings with Margaret Boals
In January 1988, Mr. Franz received a telephone call from
his mother, Margaret Boals. She told him that she had received
two notices of deficiency from the IRS demanding a total of
$500,000 in delinquent taxes from her husband's estate. Mr.
Franz contacted petitioner and on April 13, 1988, took him to see
Ms. Boals. During his meeting with Ms. Boals, petitioner
suggested that she withdraw all of her money from her financial
accounts and transfer it to him. Petitioner told Ms. Boals that
the IRS could not seize the money if he held it in his trust
account.
Ms. Boals agreed to pay petitioner $150 per hour for his
services and, over the course of several weeks, gave petitioner
three checks totaling $312,436.05 which petitioner deposited into
a newly opened trust account. Petitioner and Ms. Boals agreed
that petitioner would use the funds only when Ms. Boals so
authorized. Between 1988 and 1989, petitioner wrote, with Ms.
Boals' authorization, checks on the account totaling $109,124.50.
During the same period, however, petitioner also wrote, without
authorization, over $180,000 in checks for a variety of his
personal expenses including: (1) Repairs and parts for his BMW
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