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Vinson, of Ocean City, Maryland, who advised
that he should file joint returns to minimize
the tax liability. Mr. Vinson prepared
joint returns, and Mr. Beatty presented those
returns to his wife and told her where to
sign. Mrs. Beatty signed the returns because
she believed that failure to do so would
result in her husband going to jail. She was
not aware that she had the option of filing
separately, or that she could have chosen not
to file at all.
10. If you were required to pay the tax liability,
would it cause an economic hardship? Yes.
Please Explain.
Mrs. Beatty works during the summer months in
Ocean City, Maryland. During the “off season,” it
is nearly impossible for Mrs. Beatty to obtain
full-time employment.
a. If a hardship would exist, please provide a
list of your current monthly income and ex-
penses.
Monthly Income: $0.
Monthly expenses: Mr. Beatty pays the monthly
household expenses. When Mrs. Beatty is employed
during the summer months, her wages (minimal at
best) are used for basic expenditures such as gas,
groceries, etc.
* * * * * * *
14. At the time the return was filed, what assets did
you and your spouse own (cars, boats, homes, prop-
erty, stocks, bonds, etc.)?
In or around April 1993, the Beattys moved
into a townhouse in Ocean City, Maryland. Mr.
Beatty told Mrs. Beatty that they owned the prop-
erty, and Mrs. Beatty went about fixing up the
property as needed. In fact, Mr. Beatty had nego-
tiated with someone for whom he worked on a regu-
lar basis to rent the property with an option to
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Last modified: November 10, 2007