Joyce A. Siddons, Petitioner, and Richard J. Siddons, Intervenor - Page 8

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               during the 12-month period ending on the date relief was               
               requested (first element);                                             
                    (b) At the time the return was signed, the requesting             
               spouse had no knowledge or reason to know that the tax would           
               not be paid. The requesting spouse must establish that it              
               was reasonable for the requesting spouse to believe that the           
               nonrequesting spouse would pay the reported liability. If a            
               requesting spouse would otherwise qualify for relief under             
               this section, except for the fact that the requesting spouse           
               had no knowledge or reason to know of only a portion of the            
               unpaid liability, then the requesting spouse may be granted            
               relief only to the extent that the liability is attributable           
               to such portion (second element); and                                  
                    (c) The requesting spouse will suffer economic hardship           
               if relief is not granted. For purposes of this section, the            
               determination of whether a requesting spouse will suffer               
               economic hardship will be made by the Commissioner or the              
               Commissioner's delegate, and will be based on rules similar            
               to those provided in �301.6343-1(b)(4) of the Regulations on           
               Procedure and Administration (third element).                          
          Respondent concedes that petitioner satisfied the first element             
          because her divorce from intervenor was finalized before she                
          filed her petition for relief from joint and several liability.             
          In addition, respondent concedes that petitioner would suffer               
          economic hardship if she were required to pay the remaining                 
          liability and, therefore, satisfies the third element.  The                 
          parties, however, dispute whether petitioner has satisfied the              
          second element, whether petitioner did not know or have reason to           
          know when the requesting spouse signed the return that the tax              
          would not be paid.  Accordingly, the issue for the Court is                 
          whether petitioner established that it was reasonable for her to            
          believe that intervenor would pay the reported liability.  Wiest            







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