Nancy M. O'Neill, Petitioner, and Robert B. Wollow, Intervenor - Page 9

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          No Knowledge or Reason To Know                                              
               Petitioner knew that the tax liability shown on the 1998               
          joint return would not be paid when the return was filed.                   
          Petitioner contends that, when she signed the joint return, she             
          thought that her IRA would be seized by the bankruptcy court and            
          used to pay the 1998 joint liability.  According to petitioner,             
          the reason that she and Mr. Wollow requested an extension for               
          filing the joint return was to give the bankruptcy court more               
          time to seize and distribute her IRA.                                       
               We do not see how petitioner reasonably could have expected            
          that her IRA would be used to satisfy the 1998 joint liability              
          when she had not authorized the IRA’s liquidation and                       
          distribution.  Moreover, because petitioner agreed to pay the               
          1998 joint liability with the proceeds from her IRA, petitioner             
          knew that Mr. Wollow would not pay it.  This factor strongly                
          weighs against granting relief.  See Washington v. Commissioner,            
          supra at 150.                                                               
          The Spouses’ Legal Obligations                                              
               At trial, petitioner testified that, pursuant to the divorce           
          decree, both she and Mr. Wollow were “responsible for the joint             
          filed return and any community debts to be paid.”  Petitioner               
          agrees, therefore, that under the decree she and Mr. Wollow share           
          the legal obligation for paying the 1998 joint liability.                   
          Accordingly, this factor is neutral.                                        

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