- 27 -
Commissioner, 121 T.C. 73, 88 (2003); Wiest v. Commissioner, T.C.
Memo. 2003-91.
Respondent contends that, when petitioner signed the 1995
return, she knew or had reason to know that Mr. Wiwi would not
pay the tax due for 1995, and that it was not reasonable for
petitioner to believe that Mr. Wiwi would pay the tax. We
disagree.
When Mr. Wiwi and petitioner filed their 1995 tax return, he
told her, and she reasonably believed, that he would pay the
unpaid tax for 1995 according to an installment agreement he had
attached to the return. However, Mr. Wiwi failed to pay that tax
or to pay tax according to the installment agreement. Mr. Wiwi
concealed from petitioner until 1998 that he had failed to pay
the unpaid 1995 tax. During those years petitioner did not know
and had no reason to know of Mr. Wiwi’s failure to pay that tax.
This fit his pattern of deception; Mr. Wiwi had also concealed
from her that he owed tax for 1993 and 1994. Respondent offered
no contrary evidence on this factor. We conclude that this
factor favors petitioner.
7. Whether the Underpayment of Tax Is Attributable to
Petitioner’s Husband
Respondent concedes that the underpayment of tax for 1995 is
attributable to Mr. Wiwi.
Page: Previous 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 NextLast modified: May 25, 2011