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the materials and information necessary to prepare the 1994
return. Clearly petitioner relied on Ms. Wiest to file the 1994
return, and it was in fact filed. Moreover, petitioner’s prompt
action in 1998 to satisfy his 1995 and 1996 liabilities, upon
learning that Ms. Wiest had failed to file the couple’s returns
for those years, together with his testimony, persuades us that
petitioner had no actual knowledge, prior to 1998, of his
outstanding tax delinquencies, including the unpaid liability for
1994.
The question remains whether he had reason to know; that is,
as respondent’s guidance puts it, whether “it was reasonable for
* * * [petitioner] to believe that the nonrequesting spouse would
pay the reported liability”. Notice 98-61, sec. 3.02(3); see
also Rev. Proc. 2000-15, sec. 4.02(1)(b). The determination
letter failed to make this inquiry, and the facts developed at
trial are sketchy. Although conceding that he signed it,
petitioner does not recall the circumstances of signing the 1994
return. Ms. Wiest had assumed responsibility for having the
return filed. Although petitioner did not recall any specific
assurances from Ms. Wiest that she would pay the $4,062 reported
as due on the 1994 return, her wages in that year were
substantially more than his, and her withholdings were
substantially less. Moreover, we discern a pattern of deception
on Ms. Wiest’s part with respect to the 1995 and 1996 tax years;
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