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however, that her husband would separately write WPA checks for
her children’s needs such as tuition, rent, etc.
Ms. Sowards did not participate in the preparation of the
couple’s tax returns except for a few conversations with the tax-
return preparer concerning, for example, the number of charitable
deductions. She never reviewed the tax returns; her husband told
her to simply sign the returns. Petitioners expended no moneys
on lavish items.
In the spring of 1997, STL moved its offices to a new
location in Fremont, California. Mr. Sowards did not move with
STL. After STL moved its offices, Mr. Sowards performed no
further business services for STL and ceased receiving STL checks
written to WPA.14
Mr. Jesus Flores (Mr. Flores) prepared petitioners’ 1995 and
1997 returns. Petitioners’ 1996 return was prepared by American
Tax Professional. Mr. Sowards never mentioned WPA or STL to Mr.
Flores.
OPINION
A. Burden of Proof and Section 7491(a)
Mr. Sowards15 argues that respondent bears the burden of
proof with respect to factual matters because: (1) The
14Ms. Sowards testified that her husband lost his contract
with STL.
15Ms. Sowards did not advance any argument concerning the
applicability of sec. 7491.
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