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Ms. Walters and Mr. Gherman were divorced during 1989. Mr.
Gherman is in jail, serving a 30-year sentence. As far as we
know, he does not have the financial resources to pay the
deficiencies and additions to tax, nor does he have the means to
obtain those resources. Ms. Walters also lacks the financial
resources to pay the deficiencies and additions to tax. Because
of the 1988 bankruptcy, Ms. Walters walked away from her marriage
with no personal assets. She is living in her daughter's
apartment and can scarcely support herself. Additionally, as a
63-year old woman with only a high school education and a low-
paying job, there is little likelihood that Ms. Walters will ever
be able to amass the funds needed to pay the deficiencies and
additions to tax. Consequently, she would suffer undue hardship
should relief be denied.
Ms. Walters did not participate in the embezzlement of funds
from the accounts of FIP's clients, nor did she assist in the
embezzlement, as respondent contends, because she allowed Mr.
Gherman to use her name to conduct business. To accept
respondent's contention that Ms. Walters aided and abetted the
embezzlement because she allowed Mr. Gherman to organize and
operate FIP under her name, we would have to believe that Mr.
Gherman, with Ms. Walters' knowledge and consent, planned to
defraud FIP's clients at the time that FIP was organized during
1969 and then waited until the end of 1982 to effectuate that
plan. Respondent's position defies common sense and is not
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