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weighing in favor of granting relief. Rev. Proc. 2000-15, sec.
4.03(1)(d), 2000-1 C.B. at 449. By contrast, the fact that the
requesting spouse knew or had reason to know that the reported
liability would be unpaid is a strong factor weighing against
relief. Id. sec. 4.03(2)(b).
When petitioner signed the 2000 joint return in August 2001,
$13,000 remained in the Paine Webber account. Petitioner knew
that she and Mr. Sturges did not have funds available at that
time to pay the $141,302 tax liability shown as unpaid on the
return.
We do not think that petitioner honestly believed that Mr.
Sturges could pay the tax from proceeds from the Tiburon options.
The section 83(b) election attached to the return states that Mr.
Sturges paid $57,050.10 (30 cents per share) for 190,167 shares
of Tiburon restricted stock on October 23, 2000. Petitioner
produced no evidence that the stock had increased in value since
the purchase date. Petitioner testified that by October 2001
Tiburon was failing and that in November 2001 Mr. Sturges left
Tiburon.
Petitioner and Mr. Sturges attached to the return a
statement signed by Mr. Sturges that he would be filing an offer-
in-compromise. Petitioner and Mr. Sturges filed their first
offer-in-compromise offering to compromise their 2000 tax
liability for $1 on October 22, 2001. We conclude that
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