James D. Horn - Page 23




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          on an outpatient basis.  However, nothing in the medical records            
          offered by petitioner indicates he lacked the cognitive ability             
          to understand what he was signing.  Indeed, the records indicate            
          petitioner had a better grasp of reality about his business                 
          situation than his family and employees.                                    
               With respect to petitioner’s signing of Form 4549-CG for               
          1991, 1992, and 1993, the uncontradicted evidence establishes               
          that respondent’s agents believed petitioner was competent, and             
          petitioner offered no evidence that their belief was                        
          unreasonable.  Petitioner signed the Form 4549-CG for those years           
          at a meeting attended by Agent Urrutia and his manager, Faith               
          Priest, on behalf of respondent.  Both Agent Urrutia and Ms.                
          Priest testified credibly they believed petitioner understood the           
          terms of the Forms 4549-CG that he signed.  Both testified they             
          would not have accepted the Forms 4549-CG from petitioner if they           
          believed he lacked the mental capacity to sign them.  Even                  
          against the background of their acceptance for settlement                   
          purposes that petitioner’s past psychiatric difficulties excused            
          his late filings and return inaccuracies, petitioner offered no             
          credible evidence to show that Agent Urrutia and Ms. Priest were            
          or should have been aware of any lack of mental capacity or                 
          presence of vulnerability.                                                  
               Petitioner was represented at the meeting by legal counsel             
          and a certified public accountant, and was accompanied by his               






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