Joyce A. Siddons, Petitioner, and Richard J. Siddons, Intervenor - Page 9

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          v. Commissioner, T.C. Memo. 2003-91; Rev. Proc. 2000-15, sec.               
          4.02, 2000-1 C.B. at 448.                                                   
               Respondent argues that petitioner could not have reasonably            
          believed intervenor would pay the tax due because she and                   
          intervenor already had an unpaid liability for the taxable year             
          1997;7 however, petitioner testified, and the Court agrees, she             
          was unaware of the unpaid liability from 1997 at the time she               
          signed the 1998 return.  Petitioner testified that, although                
          intervenor sometimes “spent money foolishly”, he told her he had            
          enough money from the proceeds of his painting business to cover            
          the 1998 tax liability.                                                     
               The Court finds that petitioner had virtually no involvement           
          with intervenor’s business.  She had a high school education and            
          no further business or bookkeeping training.  An accountant                 
          maintained intervenor’s books and took care of his business                 
          expenses.  Although petitioner was an authorized signatory on               
          intervenor’s business account, she testified this was only to               
          enable her to sometimes pay their mortgage note out of the                  
          business account because intervenor did not draw a regular                  
          salary.  The extent of her knowledge of intervenor’s business               
          dealings was that the account held enough to pay the mortgage.              

               7The unpaid liability from taxable year 1997 was fully                 
          satisfied in 2001 through the offsetting by respondent of                   
          overpayments from petitioner and intervenor’s 1999 and 2000                 
          Federal income taxes.  See supra note 2.                                    

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