- 51 -
With respect to the evasiveness and deceit factor, peti-
tioner contends:
Ernest [Mr. Korchak] secretly and effectively excluded
petitioner from information concerning family finances.
He even concealed in a subsequent year the loss of a
$700,000.00 investment. His policy of secrecy and not
disclosing financial matters deceived the petitioner.
Respondent counters, and we agree on the record before us, that
Mr. Korchak was not evasive and did not deceive petitioner with
respect to their financial affairs. Nonetheless, as discussed
supra note 24, with respect to the involvement in financial
affairs factor, petitioner was not involved in managing her
family’s finances, making financial decisions for her family, or
the reporting of any tax consequences of such financial decisions
24(...continued)
his responsibility for managing the family finances, Mr. Korchak
made all the family financial decisions; (4) Mr. Korchak did not
discuss those decisions with petitioner; (5) throughout their
marriage, petitioner was generally unaware of bank accounts or
brokerage or other investment accounts in Mr. Korchak’s name
alone or in the names of Mr. Korchak and petitioner; (6) at all
relevant times, Mr. Korchak was responsible for opening and
reviewing all the family’s mail, including bills, tax notices,
documents pertaining to investments and other financial matters,
bank statements, including any joint checking account statements,
and petitioner relied upon him to do so; and (7) petitioner did
not become aware of Mr. Korchak’s Madison Recycling investment
until Feb. 2, 1986, when she and Mr. Korchak signed Form 872 with
respect to their taxable year 1982. We have also found that
petitioner was not involved in the reporting of any tax conse-
quences of such financial decisions that were claimed in the
joint tax returns, including the 1982 joint tax return, that she
and Mr. Korchak filed. In this connection, we have found that
petitioner’s role in the preparation of such returns was limited
to providing Mr. Korchak with any Form W-2 and IRS information
returns that she received as well as any other tax-related
information that she had.
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