Cynthia K. Beatty - Page 36




                                        - 36 -                                        
               stand that she would be liable for any tax owed on Mr.                 
               Beatty’s self-employment income. * * * Mr. Beatty’s                    
               accountant, Mr. Vinson, told Agent Renshaw that “he                    
               didn’t think about any impact on Mrs. Beatty when re-                  
               turns were prepared and filed.  He didn’t explain the                  
               implications of filing jointly or notify them [the                     
               Beattys] that they had a choice.  He figured they did-                 
               n’t have any assets anyway so he didn’t give it any                    
               thought.”  In this regard, Petitioner is similar to the                
               taxpayer in Washington v. Commissioner, 120 T.C. 137                   
               (2003).[8]  [Reproduced literally.]                                    
               We turn first to petitioner’s reliance on Washington v.                
          Commissioner, 120 T.C. 137 (2003).9  In Washington, the taxpayer            
          took the position that she relied on her spouse to pay the tax              
          shown due in the return in question and that she believed that              
          her spouse would pay such tax.  In contrast, in the instant case,           
          petitioner took the position before the IRS, and takes the posi-            


               8Despite the above-quoted assertions of petitioner, she                
          acknowledges on brief that                                                  
               ignorance of the law does not excuse a spouse from                     
               joint and several liability for tax due on a joint                     
               return under § 6013(d)(3).  Petitioner further                         
               acknowledges prior decisions of this court that charge                 
               a taxpayer with constructive knowledge of the                          
               underpayment where the taxpayer signed the returns                     
               without reviewing them, and a duty to inquire “whether                 
               such a tax shown due would be paid.”  Simon v.                         
               Commissioner, T.C. Memo. 2005-220 (and cases cited                     
               therein); see also Weist [sic] v. Commissioner, T.C.                   
               Memo. 2003-91.                                                         
               9In support of her argument that she did not know and had no           
          reason to know that Mr. Beatty would not pay the tax shown due in           
          each of the respective joint returns for the years at issue,                
          petitioner also cites Keitz v. Commissioner, T.C. Memo. 2004-74,            
          and Levy v. Commissioner, T.C. Memo. 2005-92.  We find those                
          cases to be materially distinguishable from the instant case and            
          petitioner’s reliance on them to be misplaced.                              





Page:  Previous  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  Next 

Last modified: November 10, 2007