- 19 - signed in the taxpayers’ names by the taxpayers’ accountant and bookkeeper, an individual who was neither an attorney nor admitted to practice before this Court. There was no evidence that the taxpayers ever saw the contents of the petition. In any event, after it was filed, the accountant engaged in negotiations with the Commissioner’s Appeals Office and was successful in reaching a settlement that reduced the deficiency. A stipulated decision was signed by the taxpayers and the Commissioner and then entered by the Court. Thereafter, petitioners filed a motion to vacate the decision on the ground that the taxpayers neither authorized nor ratified the filing of the petition on their behalf by their accountant. After an evidentiary hearing, the Court found that the taxpayers’ accountant had acted within the general scope of his employment in signing the petition and as petitioners’ authorized agent in filing the petition. In so finding, the Court stated as follows: It is clear from the record in this case that petitioners routinely and without question placed their tax affairs in the hands of Levy [petitioners’ accountant]. Time and again at the hearing petitioners testified that, when they received tax-related documents, their practice was to forward them to Levy or telephone Levy for his instructions with respect to what to do with the documents. Further, petitioners invariably deferred to Levy’s judgment, signing without necessarily reading, or certainly understanding, whatever document Levy advised that they sign. In other words, petitioners permitted Levy to handle their tax affairs generally and knew that he did so. In essence, Levy was petitioners’ general agent authorizedPage: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Next
Last modified: May 25, 2011