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reason to know that the liability would not be paid at the time
the return was signed is a factor weighing in favor of granting
relief. Rev. Proc. 2000-15, sec. 4.03(1)(d), 2000-1 C.B. at 449.
By contrast, the fact that the requesting spouse knew or had
reason to know that the reported liability would not be paid is a
strong factor weighing against relief. Rev. Proc. 2000-15, sec.
4.03(2)(b), 2000-1 C.B. at 449.
Respondent contends that petitioner had reason to know that
the tax liability for 1991 through 1999 would not be paid by Levy
because (1) the returns for those years (except that for 1994)
were filed late and (2) she failed to review the returns and
inquire whether the taxes would be paid. Alternatively,
respondent contends that petitioner, at a minimum, had reason to
know the 1996 through 1999 balance due amounts would not be paid
by Levy. Among other things, respondent notes that on May 22,
1997, prior to the time she signed the returns for those years,
petitioner had executed a tax collection waiver showing that she
and Levy still had an unpaid tax liability for 1979 of more than
$49,000. She and Levy had agreed to the adjustment giving rise
to that 1979 liability no later than October 10, 1988, the date
the tax was assessed.
We disagree with respondent’s argument that petitioner had
reason to know that Levy would not pay the 1991 through 1995 tax
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