Cheryl Kunsman - Page 9

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               Section 6015(b)(1)(C) requires that in signing the return              
          the individual seeking relief did not know and had no reason to             
          know of the understatement.  Relief under section 6015(b) is not            
          provided to a spouse who turned a blind eye to facts that were              
          available.  Charlton v. Commissioner, 114 T.C. 333, 340 (2000).             
               Petitioner claims that there was no entry made on line 15a,            
          Total IRA Distributions, of the 1999 Form 1040 she signed.                  
          Petitioner asserts that the 1999 tax return her former spouse               
          presented to her reflected a greater Schedule C business profit             
          than the amount as actually filed with the IRS.  Petitioner                 
          alleges that her former spouse inflated the financial performance           
          of her business so that he would not have to work and that he               
          surreptitiously withdrew funds from his IRA to support the                  
               Petitioner suggests that her former spouse so controlled the           
          financial details of her business that she was unaware of whether           
          or not the business was profitable and whether the income                   
          therefrom could support the family.5  Petitioner also suggests              
          that she was unaware that Mr. Kunsman withdrew more than $80,000            
          between 1999 and 2000 in order to provide for financial                     
          obligations of the family and of her business.  The Court is not            

               5 The 1999 Schedule C, Profit or Loss From Business,                   
          reported gross receipts of $281,326.94 and net profit of                    
          $4,450.11.  Petitioner testified that she knew the gross receipts           
          were about $300,000 but that her former spouse led her to believe           
          the profits from the business were between $20,000 and $30,000.             

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