- 8 - In the instant case, the revenue agents found that almost all of factors listed in Rev. Proc. 2000-15, secs. 4.02 and 4.03, either weighed in petitioner’s favor or were not applicable. Despite the abundance of positive factors, petitioner’s claim for equitable relief was denied. On brief, respondent argues that petitioner knew or had reason to know at the time the returns were filed that the tax liabilities would not be paid. The revenue agents’ reports indicate that relief was not granted because they believed that petitioner was equally responsible for the underpayments because of inadequate withholding. Petitioner argues that Mr. Foor had complete control over their finances during the years in issue. She claims that he assured her that the balances were paid and that he intercepted any correspondence from respondent. Petitioner contends that she did not discover the unpaid balances until after the marriage was dissolved. Petitioner credibly testified that she believed that Mr. Foor would pay their tax liabilities. Despite this belief, we cannot say that the revenue agents acted unreasonably in determining that petitioner had reason to know at the time the returns were signed that the tax liabilities would not be paid. Petitioner signed the returns for all years in issue, and these returns showed a balance due after allowance for the Federal income taxes withheld during the years. Thus, she should havePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011