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At the times in 1996 that petitioner signed the joint income
tax returns for 1990 through 1995, she was well aware of
intervenor’s past failures to file their returns on time and to
pay their income taxes. Petitioner was also aware that additions
to tax and interest were owed on their joint liabilities for 1990
through 1995. Petitioner testified as follows:
Q [By petitioner’s counsel] Did you have any
discussions with him [intervenor] about paying
penalties?
A I knew that there were penalties to be paid.
Yes. But as far as how much and how they were going to
be paid, no. * * *
Despite her knowledge of intervenor’s habitual delinquency with
respect to their income tax obligations, petitioner agreed to
defer payment of the additions to tax and interest and request
that the additions to tax be abated. Petitioner did not question
intervenor at or before the times that she signed the joint
income tax returns for 1990 through 1995 as to how and when the
additions to tax and interest would be paid if their request for
abatement was denied. Under these facts and circumstances,
petitioner has not established that it was reasonable for her to
believe that intervenor would pay the additions to tax and
interest at the times that she signed the joint income tax
returns for 1990 through 1995. Furthermore, petitioner has
identified no ground warranting an abatement nor otherwise shown
that it would have been reasonable for her to believe that an
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