James D. Horn - Page 25

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                    A. I do recall, and I will say that we did stop a                 
               few times for you to converse with your attorney --                    
                    Q. Yes.                                                           
                    A. -- and your accountant, and that those -- if                   
               that was discussed then, I wasn’t there, present.                      
                    Q. Okay.  Did we -- I finally not give up and                     
               sign because Faith Priest said that she would give me                  
               consideration about my concerns with the stockholders                  
               note being missing, and that if I could prove to her at                
               a later date, she would consider my concerns about the                 
               stockholders notes, and all the debts being missing?                   
                    A. I don’t recall that being said.                                
               Thus, even at the time of trial, petitioner recalled                   
          expressing at the meeting (at least to his attorney) misgivings             
          about accepting the Form 4549-CG because he thought he should be            
          entitled to additional deductions.  He recalled being convinced             
          by his lawyer and accountant to accept the changes and proceed              
          with the Form 4549-CG.  Presumably, petitioner’s lawyer and                 
          accountant recommended that he accept the agreement because of              
          the significant concessions offered by respondent (waiver of the            
          penalties).  Petitioner’s own words at trial show he had a full             
          recollection of the agreement he signed and a full understanding            
          of its significance at the time he signed it.                               
               We find that petitioner was competent to understand the                
          Forms 4549-CG that he signed, and we hold that the Forms 4549-CG            
          are binding on him.  By signing the Forms 4549-CG, petitioner               
          waived his rights to dispute in the Tax Court his tax liabilities           
          for the tax years 1990 through 1993 prior to assessment; he                 

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Last modified: May 25, 2011