- 11 - paid at the time the return was filed; however, the Court disagrees. In essence, respondent contends that, notwithstanding the absence of factors to intimate financial infidelity on the part of Ms. Peet, petitioner should have known that the money he designated for the 2000 tax liability was instead siphoned into a private account in her name. There is nothing in the record to indicate that petitioner had reason to suspect the financial deception from Ms. Peet that gave rise to the underpayment of tax for 2000. The Court, thus, finds that petitioner did not know or have reason to know that the tax liability for 2000 would not be paid at the time the return was filed. Rev. Proc. 2000-15, sec. 4.03(1)(e), 2000-1 C.B. at 449, considers whether the nonrequesting spouse had a legal obligation pursuant to a divorce decree or other agreement to pay the liability for which relief is sought. According to the terms of the divorce decree, Ms. Peet was obligated to pay $7,508.08 for her share of the tax liability for 2000 and $1,462.50 for her portion of the tax liability for 2001.10 This factor supports granting relief to petitioner because, by making continued payments on his installment agreements, he paid in excess of what 10The return for 2001 reflected an underpayment of tax in the amount of $5,850. Because Ms. Peet was liable under the divorce decree for one-fourth of the reported tax liability for 2001, she is obligated to pay $1,462.50 of the total liability for that year.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011