Suzanne E. Barrera, a.k.a. Suzanne E. Battle - Page 43




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          Barrera entered into the marital settlement agreement.  At the              
          time petitioner and Mr. Barrera entered into the marital                    
          settlement agreement, Mr. Barrera was approximately 1 year into             
          serving his 27-month sentence for conspiring to defraud the                 
          United States in connection with his mortgage brokerage business.           
          In the years prior to his conviction on this charge, Mr. Barrera            
          had lost his mortgage broker license, his mortgage brokerage                
          business had failed, and his and petitioner’s reported adjusted             
          gross income had fallen from approximately $199,000 in 1995 to              
          $2,108 in 2001.  By the time of his conviction in October 2002              
          and subsequent incarceration in April 2003, Mr. Barrera was not             
          working and had no income, and petitioner admitted that Mr.                 
          Barrera was living with her and the children because “he had no             
          money” and “nowhere to go”.  The facts and circumstances of this            
          case thus establish that petitioner knew or had reason to know              
          that, at the time she entered into the marital settlement                   
          agreement, Mr. Barrera would not pay the liabilities at issue.              
          Accordingly, this factor is neutral.                                        
               6.   Attributable to Nonrequesting Spouse                              
               The balance due on the joint return for taxable year 1998              
          was attributable to self-employment tax on income earned by Mr.             
          Barrera from his Schedule C activity as a business consultant.              
          The balance due on the joint return for taxable year 1999 was               
          attributable to the 10-percent additional tax on early                      







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