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the 1996 return was irregular, and petitioner should have known
that further inquiry was necessary to determine the validity of
the return.
Despite the events that occurred between petitioner and
Ms. Trevino during 1997, petitioner chose to file a joint return
for that year. (Petitioner testified that an accountant
recommended that petitioner file a joint return for 1997. It was
this same accountant who recommended that petitioner file a
request for relief from joint and several liability just a few
months after filing the 1997 return.) At the time the 1997 return
was filed, petitioner was aware that no estimated tax payments
had been made on the 1997 liabilities and that only a $500
payment was made at the time of filing. Petitioner thus had
actual knowledge of the unpaid liabilities for 1997 at the time
the return was filed.
It also appears that petitioner knew of facts that should
have made him inquire further into his family’s financial
situation. Petitioner asserted in his trial memorandum that
Ms. Trevino was suffering from a deteriorating mental condition,
beginning in September 1996. He became suspicious enough at the
start of 1997 to request a financial accounting from Ms. Trevino,
but he now claims that he still relied on his wife. He explained
in his testimony:
MR. FELDMAN: * * * For some reason I made all of
this money and I was, all of a sudden it started right
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