Stanley J. Zaban and Shirley A. Zaban - Page 26

                                                    - 26 -26                                                      

                    Mrs. Zaban was also the self-described  caretaker  of                                         
             petitioners' personal checking account and thus was aware of both                                    
             the family income and expenses.  See Zimmerman v. Commissioner,                                      
             supra; Alberts v. Commissioner, T.C. Memo. 1986-483.  She was also                                   
             charged with maintaining the corporate checking account for Zaban                                    
             Enterprises in which she made deposits and signed salary and                                         
             distribution checks to her husband, as well as drafting most other                                   
             corporate checks.  See Morris v. Commissioner, T.C. Memo. 1992-635,                                  
             affd. without published opinion 15 F.3d 1079 (5th Cir. 1994).  As                                    
             a consequence, she was aware of the unusual deposits from Mr.                                        
             Fidati and Westco.  This role in the family's personal and business                                  
             finances gave Mrs. Zaban the opportunity to learn about whether                                      
             reported income was consistent with Mr. Zaban's success in his                                       
             business ventures.  Mrs. Zaban's testimony that she was unaware of                                   
             Mr. Zaban's success in his business activities is simply not                                         
             believable.                                                                                          
                    Most critically though, Mrs. Zaban was on notice of the lavish                                
             lifestyle she was enjoying.  See Estate of Jackson v. Commissioner,                                  
             72 T.C. 356, 361 (1979); Ayer v. Commissioner, T.C. Memo. 1989-614.                                  
             During 1986, 1987, and 1988, petitioners had reported gross income                                   
             before adjustments of $66,195, $101,963, and $106,129,                                               
             respectively, and were still living in their modest home.  Yet                                       
             during that time petitioners had acquired and accumulated a                                          
             condominium share and seven automobiles, two of which were new                                       
             Mercedes Benzes; paid for their daughter's entire private college                                    



Page:  Previous  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  Next

Last modified: May 25, 2011