Jeanine T. Foor - Page 9

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          known that further payments were required to satisfy each year’s            
          liability.  The administrative record indicates that petitioner             
          knew that her husband was not having enough tax withheld, was               
          claiming extra exemptions, and was using the money to support his           
          drinking problem.  In written responses to the revenue agents’              
          questions, petitioner stated that Mr. Foor frequently lost jobs             
          and was in trouble for alcohol-related incidents, he made false             
          deposits in their joint checking account to obtain money from the           
          bank, and petitioner did not have enough money to pay the bills.            
          Petitioner’s allegations indicate that she lacked the funds                 
          necessary to pay the tax liabilities and that she was aware that            
          Mr. Foor’s financial situation was the same or worse.  We believe           
          that the revenue agents could reasonably have concluded that                
          petitioner had reason to know that the taxes would not be paid at           
          the time she signed the returns.                                            
               Our finding above precludes relief under Rev. Proc. 2000-15,           
          sec. 4.02.  However, with respect to Rev. Proc. 2000-15, sec.               
          4.03, petitioner’s reason to know is the only negative factor               
          that respondent specifically argues on brief justifies the denial           
          of equitable relief.  Although this is a strong factor weighing             
          against relief, it is not determinative.  Washington v.                     
          Commissioner, 120 T.C. at 150-151; Rev. Proc. 2000-15, sec.                 
          4.03(1)(d), 2000-1 C.B. at 449. Respondent admits that petitioner           
          is divorced, will suffer economic hardship if relief is not                 

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