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5. Noncompliance With Federal Income Tax Laws in
Subsequent Years
Petitioner and Mr. Sturges have filed Federal income tax
returns and paid all taxes owed since 2000. This factor does not
weigh against granting relief to petitioner. See Ewing v.
Commissioner, 122 T.C. at 46-47.
B. Factor Weighing in Favor of Granting Relief: Attribution of
Unpaid Liability
Respondent acknowledges that the liability for which relief
is sought is attributable to Mr. Sturges. This factor weighs in
favor of granting petitioner relief for the unpaid liability.
C. Factors Weighing Against Granting Relief
1. Significant Benefit
Petitioner did not purchase expensive jewelry, drive a
luxurious car, wear designer clothes, or take expensive
vacations. Petitioner and Mr. Sturges, however, withdrew $68,000
from the joint Paine Webber account in September 2000. They used
the money to pay for their daughter’s tuition and some home
improvements. We think that $68,000 used for those purposes is a
significant benefit to petitioner. Consequently, this factor
weighs against granting relief to petitioner.
2. Knowledge or Reason To Know Factor
In the case of a liability that was reported but not paid,
the fact that the requesting spouse did not know and had no
reason to know that the liability would not be paid is a factor
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