- 20 -
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
Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NextLast modified: May 25, 2011