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"It is this knowing disregard of the debts due to the United
States that imposes liability on the fiduciary". Leigh v.
Commissioner, supra at 1109-1110 (citing United States v.
Crocker, 313 F.2d 946 (9th Cir. 1963)).
It is clear that petitioner had no actual knowledge of the
estate’s income tax liabilities at the time that he made
disbursements and distributions from the estate. However,
respondent argues that petitioner's receipt of Forms W-2 and 1099
and subsequent notices would have put a reasonably prudent person
in petitioner's position on inquiry as to the existence of the
debts due to the United States for unpaid income taxes.
We agree that the receipt of the tax information forms in
January 1990 and 1991 was sufficient to put petitioner on
inquiry. However, petitioner, having been put on inquiry, acted
in a prudent and reasonable manner consistent with his fiduciary
duties. Petitioner forwarded the forms to the estate’s attorney,
Mr. Lahr, and sought his advice. Mr. Lahr informed petitioner
that because of the estate's size, the estate had no income tax
liabilities. Mr. Lahr's legal advice was wrong.
Petitioner continued to receive the same advice from Mr.
Lahr after giving him other notices from respondent that
indicated there might be unpaid income taxes for which the estate
might be liable. It was not until the summer of 1993 when Mr.
Dilg was brought in and prepared and filed delinquent returns
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