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for the years 1995 through 1999, and all future tax
returns. Shortly thereafter, the State of Maryland
contacted Mr. Beatty’s counsel and insisted that re-
turns be filed for years beginning in 1988. Mr. Beatty
and his accountant, Eric Vinson, immediately began
working on the returns, using whatever records they
could gather as well as estimated net income figures
provided by the Office of the Comptroller. When the
returns were prepared, Mr. Vinson told Mrs. Beatty to
sign where indicated. He did not explain that, by
signing the returns, she would be responsible for half
of the taxes due. Having been present at her husband’s
sentencing, and having heard the stern warning from the
court that, if these returns were not filed, her hus-
band would be going to jail, Mrs. Beatty signed what-
ever was put in front of her.
The tax due for the years at issue are * * * solely the
result of Mr. Beatty’s income. In 1998, Mrs. Beatty
earned $4,187, and had federal income tax of $164
withheld by her employer. In 1999, Mrs. Beatty earned
$4,387, and had federal income tax of $366 withheld by
her employer. Had she been advised to elect “married
filing separately” filing status, she would have had no
taxable income. Prior to 1998, Mrs. Beatty did not
work outside the home.
Mrs. Beatty was adjudicated bankrupt under Chapter 7 on
January 23, 2001. The returns were signed after that
on November 6, 2001. Mr. Beatty was in bankruptcy
previously. At the time the returns were signed,
neither had sufficient credit to allow them to borrow
the funds needed to pay the taxes.
* * * * * * *
Revenue Procedure 2000-15 as amplified by the provi-
sions of Revenue Procedure 2003-61 provides a list of
elements to be developed to determine the extent, if
any of relief to be granted under these innocent spouse
provisions. * * * The merits and circumstances of each
case will dictate the weight assigned to each factor in
reaching a decision to grant or reject innocent spouse
relief.
Divorced, separated or living apart for at least 12
months when claim is filed
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