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indemnify petitioner for all deficiencies arising from their
joint returns and of Mr. Heitzman’s subsequent bankruptcies in
1984 and 1990, which have apparently relieved him of his
obligations under the divorce settlement agreement.
Despite Mr. Heitzman’s agreement in the divorce settlement
that he was and would be responsible for any income tax
deficiencies, his 1990 bankruptcy discharged him from any
liability on the deficiency upheld against him in Heitzman v.
Commissioner, T.C. Memo. 1987-109, thus imposing on petitioner
the burden of paying the deficiency of $55,263 and more than 17
years of accrued interest of at least four times that amount if
she does not qualify for innocent spouse relief.
Finally, respondent argues, citing McCoy v. Commissioner, 57
T.C. 732, 734-735 (1972), that both Mr. Heitzman and petitioner
were equally ignorant of the income tax consequences of the
Stonehurst deduction and should therefore be held jointly liable.
Respondent’s reliance on McCoy v. Commissioner, supra, is
misplaced. The case at hand is one that the innocent spouse
provisions were intended to reach--Mr. Heitzman and petitioner
were not equally ignorant of the income tax consequences of the
Stonehurst deduction. Cf. Pewitt v. Commissioner, T.C. Memo.
1997-288 (wife and husband were equally knowledgeable--and
equally ignorant of Federal income tax consequences--wife
attended sales meeting where both she and husband were informed
of tax benefits and risks). Mr. Heitzman was consciously trying
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