- 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
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