Ann Marie Bright - Page 12

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          testimony to be credible.  In addition, petitioner’s testimony is           
          corroborated by the fact that her former spouse did pay the tax             
          balances due as reported on the couple’s jointly filed income tax           
          returns.  Accordingly, we conclude that petitioner had no                   
          knowledge that her former spouse would not pay, albeit at some              
          later date, the tax due with their 1995 return.                             
               Petitioner further claims that she had no reason to know               
          that her former spouse would not pay the 1995 tax liability.  She           
          points out that her former spouse was responsible for paying the            
          household expenses, including installment payments to the IRS.              
          Petitioner’s access to the joint checking account was through her           
          former spouse.  Additionally, petitioner had no access to her               
          former spouse’s separate business checking account.  It was                 
          petitioner’s former spouse’s practice to file their joint tax               
          return late, to make no payment with the return, and to enter               
          into an installment agreement with the IRS.  Although petitioner            
          signed the 1995 tax return in March 1997 and was aware of the tax           
          due, petitioner had no reason to believe that her former spouse             
          would not pay the tax liability.  In fact, petitioner’s former              
          spouse handled the tax matters with the IRS and had paid any                
          taxes due for years prior to 1995.  Contrary to respondent’s                
          position, we conclude that petitioner did not have reason to know           
          that the income tax for the taxable year in issue would not be              
          paid by her former spouse.                                                  






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