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872 were signed, Cliett did not know of New Petroleum's
dissolution or did not know that Lobliner and Markowitz no longer
had authority to sign the Forms 872 on behalf of the defunct
corporation.
Assuming arguendo, that Energy knew of the error contained
in the last three Forms 872 (which it does not concede), Energy,
in reliance on Century Data Sys., Inc. v. Commissioner, supra at
170, asserts that it was under no affirmative duty to bring
respondent's mistakes to respondent's attention. We disagree and
find Energy's reliance on Century Data Sys., Inc. v. Commissioner
to be misplaced. Energy fails to mention this Court's
qualification of that proposition; namely, that there is no
obligation to correct respondent's mistakes provided the
"petitioner did nothing to encourage the faulty assumption." Id.
at 171. Here, Energy's entire course of conduct encouraged
respondent's faulty belief that New Petroleum existed at the time
the last three Forms 872 were signed. When Lobliner and
Markowitz signed the last three consents Energy knew that New
Petroleum did not exist, and that Lobliner and Markowitz were not
officers of that corporation. Energy not only failed to call
this error to respondent's attention, but intentionally fostered
it by continuing to communicate to the IRS through correspondence
that bore the name and EIN of the dissolved corporation. Thus,
based on the record and the facts discussed herein, we find that
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