- 11 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011