Julian O. Von Kalinowski and Penelope J. Von Kalinowski - Page 16

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          expenditures that appear lavish or unusual when compared to the             
          family’s past levels of income, standard of living, and spending            
          patterns; and (4) the culpable spouse’s evasiveness and deceit              
          concerning the couple’s finances.  See Hayman v. Commissioner,              
          supra at 1261; Price v. Commissioner, supra at 965.                         
               1.   Facts Supporting a Finding that Petitioner Lacked                 
                    Constructive Knowledge of Understatement                          
               On one hand, certain of the above-mentioned factors indicate           
          that petitioner did not have reason to know of the understatement           
          of tax contained in the couple’s 1981 and 1982 tax returns.                 
          First, petitioner had no role in the couple’s finances beyond               
          making payments for household expenses.  All other matters were             
          the responsibility of her income-producing counterpart, a                   
          responsibility which he in turn delegated to his personal                   
          secretary.  While Mr. Von Kalinowski did not seek to hide any               
          financial information from petitioner, the two simply did not               
          discuss such matters beyond mere generalities.  In keeping with             
          this general practice, petitioner was at no time aware of her               
          husband’s participation in the tax shelter investments.                     
               Second, as reflected in the findings of fact, petitioners              
          maintained a reasonably affluent lifestyle both prior to their              
          marriage and during the years which followed.  Petitioner                   
          testified that she did not experience a change of lifestyle                 
          during the tax years at issue, and we find her testimony credible           
          in this regard.  We are satisfied that nothing about petitioners’           

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