Judith A. Madden - Page 18

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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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