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liabilities. The 1991 through 1995 tax liabilities were
attributable to Levy, as petitioner had no source of income.
Levy controlled all aspects of his medical business, and he
conducted his business and financial affairs without any
assistance or involvement from petitioner. Levy arranged for the
preparation of the 1991 through 1995 returns. He did not discuss
with petitioner the preparation and the filing of those returns
and the payment of the tax owed.
Contrary to respondent’s argument, we are unwilling to infer
here that the late filing of the 1991, 1992, 1993, and 1995
returns should have given petitioner reason to know that Levy
would not pay the tax liabilities. The 1991 return was filed
only about 3 weeks late on November 5, 1992. The 1992 and 1993
returns (along with the timely filed 1994 return) were filed on
August 15, 1995, and were filed, respectively, 22 months and 10
months late. The 1995 return was filed almost 4 months late on
February 11, 1997. We think a person in petitioner’s position
could reasonably have believed that the late filing of the 1992,
1993, and 1995 returns was due to the domestic turmoil between
petitioner and Levy. Petitioner and Levy separated in 1994, and
each moved out of the Key Biscayne condominium that had been
their marital home. Thereafter, they each maintained a separate
household and lived apart.
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