Ruthe G. Ohrman - Page 20

                                       - 20 -                                         
          petitioner’s position would have been put on notice by                      
          Mr. Ohrman’s evasion and deception with respect to the Dean                 
          Witter account statements.  Petitioner was well aware of the                
          extent of Mr. Ohrman’s past gambling and that he needed access to           
          money in order to continue gambling.  Even though petitioner had            
          knowledge of these facts, she did not keep close watch over the             
          Dean Witter account.  Although petitioner also suffered difficult           
          personal circumstances during 1999, she was able to retain                  
          control of other aspects of the family finances.  Therefore, when           
          we consider the entire record of this case, we conclude that                
          petitioner has not established that she had no reason to know of            
          the understatement when she signed the joint 1999 return.                   
               We also conclude that petitioner has not satisfied the                 
          requirements of subparagraph (D) of section 6015(b)(1).  Taking             
          into account all the facts and circumstances of petitioner’s                
          case, it is not inequitable to hold her liable for the 1999 tax             
          deficiency because the tax-avoidance purpose of the separation              
          agreement is apparent from the evidence.  First, a proposed tax             
          liability of nearly $43,000 prompted petitioner to meet with                
          Rackner for advice in early June 2001.  Second, petitioner told             
          Rackner about the proposed tax deficiency during this meeting,              
          and Rackner informed her that relief from joint and several                 
          liability might be available.  Third, with the knowledge that               
          relief from joint and several liability might be available to               

Page:  Previous  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  Next

Last modified: May 25, 2011