- 34 -
trust fund recovery penalty of $276,226.86 was assessed against
Mr. Butner. Moreover, on October 25, 1999, a notice of Federal
tax lien was filed against Mr. Butner with respect to that
liability. On the same date, notices of Federal tax lien were
filed against petitioner and Mr. Butner for their respective
liabilities for the taxable years 1994 and 1995. Petitioner was
aware of those notices on October 14, 2000, when she signed the
respective joint income tax returns for the taxable years 1998
and 1999. Based on that knowledge, petitioner had reason to know
that the tax liability shown in each of those returns would not
be paid.16
We find that petitioner had reason to know (1) on January
20, 1998, when she signed the respective joint income tax returns
for the taxable years 1994 and 1995 and (2) on October 14, 2000,
when she signed the respective joint income tax returns for the
taxable years 1998 and 1999 that the respective liabilities shown
in those returns would not be paid. This factor weighs against
granting relief.
Nonrequesting Spouse's Legal Obligation
Respondent contends that this factor is neutral. We agree.
Petitioner and Mr. Butner were still married at the time of
trial. The record contains no evidence of any relevant agreement
with respect to the liabilities at issue.
16See Collier v. Commissioner, T.C. Memo. 2002-144.
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