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pay the bills from whenever it was. So I took over the
bills for a few months, but then he got mad because he
never had enough money when he needed it. So he took
care of all the finances.
From the early 1990s, when petitioner took care of their
finances, she knew that money was tight and there might not be
enough money to pay a large tax liability. Petitioner should
have made further inquiry to determine the amount of taxes they
owed and whether the full liability would be paid.
In addition to petitioner's knowledge of the financial
difficulties faced by the family, petitioner knew of other facts
that should have forced further inquiry into her family's
financial situation. Petitioner had learned through common
acquaintances at DOD that Mr. Pierce had quit his job in February
1995. A reasonable person would, at minimum, question their
spouse (or ex-spouse) whether enough money remained to pay any
tax liability reported on their joint return. Secondly,
petitioner testified that the 1994 return was signed after she
and Mr. Pierce were separated. It also seems reasonable to this
Court that their separation should maintain, if not heighten, her
duty to examine any jointly filed returns.
She also argues that because she was unaware of Mr. Pierce's
noncompliance with Federal tax law, before, during, and after the
year at issue, she had no reason to doubt that the liability
would be paid. Petitioner's lack of awareness, however, does not
convince this Court that she did not retain an affirmative duty
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