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the requesting spouse did not know or did not have any reason to
know that the nonrequesting spouse would not pay the income tax
liability. Rev. Proc. 2000-15, sec. 4.03(1)(e), 2000-1 C.B. at
449.
Petitioner and Mr. Scott’s divorce decree placed the legal
obligation to pay the $1,200 unpaid tax liability for 2000
exclusively on Mr. Scott. Mr. Scott was also obligated to pay
“any other marital debt not specifically included” in the divorce
decree. Respondent asserts, however, that petitioner knew or had
reason to know, at the time that the divorce judgment and decree
was entered, that Mr. Scott would not pay the tax liability. We
disagree.
Petitioner first learned that Mr. Scott had failed to pay
taxes when Mr. Scott filed for bankruptcy in 1995. During the
bankruptcy proceedings petitioner suggested to Mr. Scott that
they try to arrange installment payments to pay their Federal
taxes. Mr. Scott told petitioner to stay out of it because it
was his business and he would handle it. There is nothing in the
record to suggest that when the divorce decree was signed in
2001, petitioner knew, or should have known, that Mr. Scott would
not pay the taxes. Therefore, we conclude that this factor
favors petitioner.
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