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receipt of the income. See Reser v. Commissioner, 112 F.3d 1258,
1265 (5th Cir. 1997), affg. in part and revg. in part T.C. Memo.
1995-572; sec. 1.6015-3(c)(2)(i)(A), Income Tax Regs.
Petitioner and Mr. Elliott separated in 2003, and they had
lived apart for over 12 months at the time of the filing of the
petition. However, as noted above, the items giving rise to the
deficiency on the joint return are the unreported early
distributions from petitioner’s separate IRA. Petitioner allowed
Mr. Elliott to fill out the early distribution forms, petitioner
signed her name to the forms, and the distribution was deposited
into petitioner and Mr. Elliott’s joint bank account. Petitioner
admitted that she knew about the IRA withdrawals, and that she
discussed it with Mr. Elliott before they withdrew the amounts.
Petitioner argues that her cognitive deficiencies and
learning disabilities prevent her from understanding forms and
numbers, so she had to rely on others, including Mr. Elliott, to
prepare her tax returns and handle her finances. Petitioner
testified that Mr. Elliott filled out financial forms, and she
signed them, trusting that her husband was doing what was in her
best interest since she could not comprehend the forms. Even
though petitioner could not comprehend forms, she testified that
she asked Mr. Elliott questions to determine whether the amounts
on the return were correct. She admitted, however, that she did
not ask him whether the IRA distributions were reported on the
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