Renee Trupin D'Aunay - Page 20

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          purchase of a Rolls Royce in 1987, and $11,706 in proceeds from             
          sales of collectibles through Sotheby’s should also be treated as           
          transfers for the purpose of avoiding tax.  We are unwilling,               
          however, to carry the inference to all transfers to petitioner by           
          Trupin during the period of their marriage.  We are not persuaded           
          that the items listed in this paragraph increase petitioner’s               
          liability under section 6015(c)(4)(A).                                      
               Respondent also argues that petitioner is disqualified from            
          relief under section 6015(c)(3)(C) to the extent that she had               
          actual knowledge of the facts concerning disallowed deductions              
          for 1982 and omitted income for all of the years in issue.                  
          Respondent acknowledges the burden to prove actual knowledge by a           
          preponderance of the evidence on this issue.  Culver v.                     
          Commissioner, 116 T.C. 189, 196 (2001); see Cheshire v.                     
          Commissioner, 115 T.C. 183, 196-197 (2000), affd. 282 F.3d 326              
          (5th Cir. 2002).                                                            
               Petitioner was actively involved in RRI’s tax shelter                  
          business as an employee and as an officer and was well aware of             
          the investments giving rise to the disallowed deductions for                
          1982.  See Crowley v. Commissioner, T.C. Memo. 1995-551.  With              
          respect to the unreported income from constructive dividends                
          during the later years, petitioner was well aware that she and              
          Trupin used the yacht for personal purposes, that the yacht was             
          owned by a corporation owned or controlled by Trupin, and that              






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