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me that we were taking a loss from the business.
Seldom did I take a draw from the business because
finances were so tight. We basically operated on a
cash basis with very little inventory and credit was
limited. When he figured the taxes each year I did not
question him, and signed the tax forms without
question.
When the IRS audited us and problems were found I
was greatly surprised and totally unaware of any
inconsistencies both with our personal taxes and the
businesses. His explanation, at the time, was that he
knew that we didn’t have the cash flow and knew we
couldn’t afford the taxes. I also have reason to
believe that there were other things that I was not
aware of. It wasn’t too long after this that we went
bankrupt.
In 1994 the children and I moved to Arimo, Idaho.
The bankruptcy was filed in California while I was in
Idaho.
One of respondent’s managers sent petitioner a letter
acknowledging receipt of her request for section 6015 relief and
asking her to complete and return a questionnaire enclosed with
the letter. Petitioner completed the questionnaire and returned
it to respondent in or about September 2002. The additional
information petitioner included on the questionnaire included,
inter alia, her education, Mr. Scott’s education, and a monthly
income and expense sheet showing a two-member household with wage
income of $1,198, unemployment compensation of $1,280, and
expenses totaling $2,007. A tax examiner with respondent’s
Cincinnati Centralized Innocent Spouse Operations (CCISO)
considered petitioner’s request for section 6015 relief.
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Last modified: November 10, 2007