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4. Knowledge or Reason To Know Factor
In the case of a liability that was reported but not paid, the
fact that the requesting spouse did not know and had no reason to
know that the liability would not be paid is a factor weighing in
favor of granting relief. Rev. Proc. 2000-15, sec. 4.03(1)(d),
2000-1 C.B. at 449. By contrast, the fact that the requesting
spouse knew or had reason to know that the reported liability would
be unpaid is a strong factor weighing against relief. Rev. Proc.
2000-15, sec. 4.03(2)(b), 2000-1 C.B. at 449. Respondent contends
that petitioner did not prove that she did not know or did not have
reason to know that the unpaid 1989 tax liability would not be paid
at the time the return was filed. We disagree.
Petitioner filed a joint return for 1989 with her former
husband upon the advice of the tax return preparer. She was under
the impression that she was required to file a joint return because
she was married at the time. Petitioner provided her Form W-2 to
the tax return preparer. The tax return preparer provided her the
1989 joint tax return for signature, and she signed the return. No
discussions took place between petitioner and Mr. Washington about
the preparation and subsequent filing of the 1989 joint return or
about the payment of any tax owed. Petitioner credibly testified
that she believed Mr. Washington would pay the tax owed since it
resulted from his business operations.
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