Marc S. Feldman - Page 14

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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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