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Petitioner did not review petitioners’ bills or bank
statements and only rarely discussed finances with Ms. Braden or
paid a bill himself.
In approximately August 1995, petitioners moved into a newly
constructed house. Ms. Braden’s father, who had been diagnosed
with terminal cancer several months earlier, moved into
petitioners’ new home with them and remained with them until his
death in September 1995.
Ms. Braden and her brother were the heirs of their deceased
father; Ms. Braden was appointed executrix of her father’s
estate. As executrix, Ms. Braden met with the estate’s probate
counsel regarding estate matters. Petitioner sometimes attended
these meetings but did not assist Ms. Braden in performing her
duties as executrix.
At some point during 1995, Ms. Braden received distributions
from several individual retirement accounts (IRA’s) owned by her
father at the time of his death. Although petitioner was aware
that Ms. Braden had received the distributions, he did not know
that the distributions came from IRA’s or that the distributions
were taxable for Federal income tax purposes. He believed that
the distributions simply represented nontaxable distributions
from the estate of Ms. Braden’s father. His belief was based on
conversations he had with Ms. Braden, the estate’s probate
counsel, and a retired Internal Revenue Service (IRS) special
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