- 33 -
due in each such return would be paid at the time of such filing.
Nonetheless, in response to the very next question in that
questionnaire, which sought a description of any plan that she
and Mr. Butner had for paying any liability that was shown due in
the joint income tax return for each of the years at issue and
that was not paid at the time of filing each such return,
petitioner admitted that there was no plan for paying any such
liability.
Furthermore, in 1996, before petitioner and Mr. Butner filed
a joint income tax return for any of the taxable years 1994,
1995, 1998, and 1999, the Bankruptcy Court entered judgments in
excess of $3 million against them. At the time of the trial in
this case, those judgments had not been satisfied. Petitioner
was aware that those judgments had been entered against Mr.
Butner and herself and had not been satisfied when she signed
(1) on January 20, 1998, the respective joint income tax returns
for the taxable years 1994 and 1995 and (2) on October 14, 2000,
the respective joint income tax returns for the taxable years
1998 and 1999.
In addition, although petitioner testified that she had no
reason to believe at the time she signed the joint income tax
return for each of the years at issue that the tax shown due in
each such return would not be paid and that she thought her
husband "was going to take care of that", on April 24, 1995, a
Page: Previous 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Next
Last modified: November 10, 2007