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Respondent counters that it is irrelevant whether petitioner
was absent from her home from May to December of 2000. The Forms
1099 for the omitted income would have been mailed in early 2001,
after petitioner had moved back into the house.
Both petitioner and intervenor had access to the mail at the
address where the Forms 1099 were sent during early 2001.
Intervenor did not leave petitioner until October of that year.
Nevertheless, the Court finds that petitioner’s testimony was
credible and persuasive that she was unaware of the omitted
income until January of 2004. See Rowe v. Commissioner, T.C.
Memo. 2001-325 (finding that the taxpayer had no actual knowledge
of an IRA distribution, even though periodic statements from the
financial institution managing the IRA were sent to her home
address, since other family members also picked up the mail).
Petitioner’s testimony that she had no involvement in any
aspect of intervenor’s business was also credible. Petitioner’s
training was in elementary education. Petitioner worked as a
teacher for the first 4 months in 2000, but was a homemaker for
the remainder of the year. Petitioner stayed home with her five
children while she relied on intervenor to provide for the
family. Respondent has failed to meet his burden to prove that,
at the time petitioner signed the 2000 return, she had an actual
and clear awareness of the omitted income.
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