Francenia M. Griffin - Page 17

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          not know and had no reason to know that the liability would not             
          be paid is a factor weighing in favor of granting relief.  Rev.             
          Proc. 2003-61, sec. 4.03(2)(a)(iii).  By contrast, the fact that            
          the requesting spouse knew or had reason to know that the                   
          reported liability would go unpaid is a factor weighing against             
          relief.  Id.                                                                
               The examiner determined that petitioner did not satisfy this           
          condition in favor of granting relief because petitioner did not            
          have a reasonable belief that any portion of the underpayments              
          would be paid at the time she signed the returns.  Petitioner               
          stipulated that at the time she signed the 1992, 1993, 1994,                
          1995, 1996, 1997, and 1998 Forms 1040, she knew there were                  
          balances due for each of the tax years and she knew that the                
          balances due would not be paid because she and Mr. Griffin were             
          in bankruptcy and had no funds with which to pay the taxes.                 
          Thus, we find that petitioner knew or had reason to know that the           
          reported liabilities would not be paid.  This factor favors                 
          denying relief to petitioner.                                               
          3. Requesting Spouse’s Legal Obligation                                     
               Petitioner’s divorce decree specifically states:                       
               [petitioner and Mr. Griffin] shall be equally responsible              
               for all federal income tax liabilities of the parties from             
               the date of marriage through December 31, 2001, and each               
               party shall timely pay 50 percent of any deficiencies,                 
               assessments, penalties, or interest due thereon and shall              
               indemnify and hold the other party and his or her property             
               harmless from 50 percent of such liabilities unless such               
               additional tax, penalty, and/or interest resulted from a               

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