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(1) Under the divorce decree, Alimam has a legal obligation to
pay the unpaid taxes due for the years petitioner and Alimam were
married, including 1993, 1994, and 1995; (2) essentially all of
the underpayments at issue herein are attributable to Alimam;
(3) petitioner and Alimam are currently divorced; (4) petitioner
did not receive a significant benefit from the unpaid taxes; and
(5) petitioner has, throughout her marriage with Alimam and for
subsequent years, made a good faith effort to comply with the tax
laws with regard to her income.
The two remaining factors (whether petitioner had knowledge
of or reason to know of Alimam’s nonpayment of the taxes due and
whether petitioner would suffer economic hardship if not granted
relief from joint and several liability) are more difficult
questions.
Petitioner’s Knowledge of or Reason To Know
of the Nonpayment of the Tax
In determining whether petitioner, at the time the tax
returns were signed, had knowledge or reason to know that the tax
reported on the returns would not be paid, relevant factors
include petitioner’s level of education, petitioner’s involvement
in the family’s financial affairs, petitioner’s lifestyle,
standard of living, and spending patterns, and Alimam’s
evasiveness and deceit concerning the marital finances. See Levy
v. Commissioner, T.C. Memo. 2005-92 (citing Kistner v.
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