Lota Womack - Page 19

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          has a duty to inquire further.  Guth v. Commissioner, 897 F.2d              
          441, 444-445 (9th Cir. 1990), affg. T.C. Memo. 1987-522.                    
               Factors to be considered in determining whether the spouse             
          had reason to know are the alleged innocent spouse's level of               
          education; the spouse's involvement in the family's business and            
          financial affairs; the presence of expenditures that appear                 
          lavish or unusual when compared to the family's past levels of              
          income, standard of living, and spending patterns; and the                  
          culpable spouse's evasiveness and deceit concerning the couple's            
          finances.  Stevens v. Commissioner, 872 F.2d at 1505; Flynn v.              
          Commissioner, 93 T.C. 355, 365-366 (1989).                                  
               Petitioner has a high school education.  She assisted Mr.              
          Womack in keeping records for his businesses, but prior to the              
          years in issue.  She did not have access to the business books or           
          records for the taxable years 1989 or 1990.  She was responsible            
          for paying routine family expenses, such as groceries, gas, and             
          the children's expenses, but Mr. Womack paid the larger mortgage,           
          utility, and insurance bills.  Petitioner and Mr. Womack operated           
          in separate spheres financially, except that Mr. Womack provided            
          funds to petitioner as needed to pay household and personal                 
          expenses.  Mr. Womack paid for petitioner's breast implants and             
          bought her several gifts of jewelry during the years at issue.              
               Petitioner did not review the 1989 return and does not                 
          remember whether she herself signed the 1990 return.  This does             
          not excuse her from responsibility for their contents.  The                 




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