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The 1985 return fully disclosed on Form 8283 the
contribution of the Strata stock to ODC and the method used to
determine the stock's fair market value. Furthermore, Mr. Davis
relied on Mr. Stimmel to prepare the 1985 return and the Form
8283 regarding the donation of Strata stock to ODC. See infra.
I. Reliance on Return Preparers
Respondent argues that petitioner knew about the erroneous
and fraudulent nature of the information provided to his return
preparers, and the return preparers were not in a position to
discover any errors or fraud. Petitioner argues that his
reliance on his employees and return preparers negates any
fraudulent intent on his part. We agree with petitioner.
Petitioner's reliance upon third parties to keep his books
and records and to prepare his returns indicates the absence of
fraudulent intent. See Hill v. Commissioner, T.C. Memo. 1982-
143; see also Marinzulich v. Commissioner, 31 T.C. 487, 490
(1958). Petitioner, in good faith, relied on members of his
staff to turn over all of his books and records and otherwise
make a full and complete disclosure to his third party return
preparers. See Merritt v. Commissioner, 301 F.2d 484, 487 (5th
Cir. 1962), affg. T.C. Memo. 1959-172.
Mr. Davis was a busy man who relied on his employees and
professionals. Jean Davis credibly testified that all
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