- 10 - United States, 509 F.2d 162, 166-167 (5th Cir. 1975); Terzian v. Commissioner, 72 T.C. 1164, 1170 (1979). We conclude that a reasonably prudent person in petitioner's position would not have had reason to know of the unreported community income from Trucking during the years at issue. In arriving at this conclusion, we emphasize that petitioner did not complete the ninth grade and was not sophisticated with respect to financial or tax matters. Prior to and during her marriage, petitioner did not hold a job. Apparently, she had no experience with paychecks or income taxes and never filed an income tax return. Moreover, there is no indication of lavish or extravagant expenditures that might have given petitioner reason to know of the unreported income. Rather, petitioner lived a modest lifestyle. Trucking was a partnership between Mr. Thompson and his father. Petitioner was unfamiliar with the financial condition and business operations of Trucking. Taxation of income from a partnership is far more complicated than the taxation of an employee's wages. A partner's income is based upon his or her "distributive share" of a partnership's tax items. Sec. 702(a). Without going into an elaborate explanation of partnership accounting, we merely note that a partner might have take-home money, without having taxable income from the partnership; e.g., a draw. Consequently, petitioner did not have reason to know ofPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
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