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According to Mr. Becnel’s testimony, after Mr. Vicknair
died, Mr. Becnel contacted Mr. Vicknair’s widow, requested his
family’s tax records, and provided them to a different return
preparer. Mr. Becnel testified that he assumed Mr. Vicknair’s
widow had provided him with all the information necessary to
prepare petitioner’s 2002 return. Mr. Becnel further testified
that the failure to report the income at issue did not come to
his attention until petitioner received the notice of deficiency
for 2002. The sole issue is whether petitioner acted in good
faith and with reasonable cause in the filing of his 2002 Federal
income tax return under the scenario described.
Even if the Court were to accept petitioner’s contention
that he did not receive the Forms 1099-B and 1099-DIV for taxable
year 2002 from Mr. Vicknair’s widow, that fact does not establish
per se reasonable cause for the understatement of income tax or
good faith on petitioner’s part. The facts and circumstances in
this case indicate that petitioner exerted little effort to
assess his proper tax liability for 2002. Mr. Becnel testified
that stockbrokers managed the accounts that gave rise to
petitioner’s omitted income and that petitioner never received a
report or other information that would show how petitioner’s
accounts performed in 2002.3 Although petitioner might not have
3All of the monthly reports and other information related to
these accounts were, at Mr. Becnel’s behest, sent directly to the
(continued...)
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