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4. Knowledge or Reason To Know
The relevant knowledge in the case of a reported but unpaid
liability is whether the taxpayer knew or had reason to know that
the tax would not be paid at the time the return was signed.
Rev. Proc. 2000-15, sec. 4.03(1)(d) and (2)(b), 2000-1 C.B. at
448-449; see also Washington v. Commissioner, 120 T.C. at 150.
Accordingly, for this factor to weigh in favor of relief,
petitioner must establish that, at the time she signed the 1998
joint return on May 23, 2000, the 1999 joint return on November
2, 2000, and the 2000 joint return on July 24, 2001,18
18 In the instant case, the joint return for 1998 was
stamped as received by the IRS on May 30, 2000, the joint return
for 1999 was stamped as received on Nov. 15, 2000, and the 2000
joint return was stamped as received on Aug. 6, 2001. There is
no dispute that these were the dates the joint returns were
filed. Petitioner’s testimony, however, raises an issue as to
when she signed the joint returns. Petitioner admitted that she
signed the returns, but she did not know the dates she signed
them, nor did she recall whether a particular return was timely
or late when she signed it. The joint return for taxable year
1998 shows a handwritten signature date for both petitioner and
Mr. Barrera of “5-23-00”, the 1999 joint return shows a typed
signature date for both petitioner and Mr. Barrera of “11-02-00”,
and the 2000 joint return shows a typed signature date for both
petitioner and Mr. Barrera of “7/24/01”. Petitioner testified
that she did not write the dates shown on the returns next to her
signatures and that she was not sure she signed the returns on
the particular dates listed. Petitioner further testified that
she had “no clue” if she signed a particular return “three months
earlier and * * * [Mr. Barrera’s] just turning it in at whatever
time he wants to turn it in.”
Although we accept petitioner’s testimony that she did not
write the signature dates on the 1998, 1999, and 2000 joint
returns, this fact does not convince us that petitioner signed
the returns on dates other than those shown next to her
signatures. There is no dispute that petitioner voluntarily
(continued...)
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