- 14 -
her knowledge of the settlement between BGE and Dupont, and her
apparent experience and knowledge of the tax implications of
doing business as an S corporation, petitioner should have
inquired into whether the flowthrough of income from the Dupont
settlement with BGE was properly accounted for on petitioners'
return. Accordingly, petitioner's education and experience weigh
heavily against allowing innocent spouse relief to petitioner.
As to the second factor, involvement in the family's
finances, petitioner had full responsibility for maintaining the
family checkbook and for writing checks to pay the household
bills. Petitioner's husband worked late, and petitioner was
entrusted with substantial control over the household bank
accounts and budgeting. Because petitioner usually retrieved the
mail, she had first access to the bank statements mailed to
petitioners' residence. Moreover, petitioners had been having
considerable difficulties with the IRS concerning earlier taxable
years. Petitioner played a significant role in gathering the
documents and materials necessary for petitioners' accountants to
prepare their tax returns. Given the difficulties petitioner and
her husband had with the IRS, and her involvement in preparing
the tax returns, petitioner should have had a heightened
awareness about the accuracy of petitioners' 1992 tax return.
Although respondent requested petitioners to provide the
bank statements from all of their bank accounts for 1992,
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011