- 3 - 1999, she discovered he had made late bill payments that had adversely affected her credit report. Tax Returns Petitioner and Mr. Cowdery filed joint Federal income tax returns for 1992, 1993, 1994, and 1995. Their returns reflected unpaid income tax liabilities (tax liabilities) of $806, $1,729, $1,705, and $1,394 for 1992, 1993, 1994, and 1995, respectively. The tax liabilities resulted from underwithholding of wages attributable to both petitioner and Mr. Cowdery. Mr. Cowdery had their joint returns prepared by a tax return preparer. Petitioner gave Mr. Cowdery her Forms W-2, Wage and Tax Statement, to take to the preparer. When petitioner and Mr. Cowdery received the completed returns and saw the amounts due, Mr. Cowdery assured petitioner that he had talked to the return preparer about payment plans and that he would make monthly payments on the liabilities. Petitioner thought Mr. Cowdery was making the payments on the tax liabilities because of Internal Revenue Service (IRS) payments she believed to be in envelopes she saw in their mailbox. Petitioner did not know exactly what was in the envelopes, however, and she never asked Mr. Cowdery what was in them. Petitioner also never saw any checks written to the IRS by Mr. Cowdery. Sometime around October 1995, the IRS levied petitioner and Mr. Cowdery’s bank account. Petitioner first became aware thatPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
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