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on Mr. Dunne’s Schedule K-1 on their 1997 tax return.
Furthermore, petitioners were liable for additions to tax under
section 6651(a)(1) and (2) for 1997 and 1999.
On August 18, 2005, Mrs. Dunne sent to respondent a Form
8857, Request for Innocent Spouse Relief, for the year 1997.
Mrs. Dunne stated that she signed the 1997 return but did not
review it because there had never been a problem previously.
Mrs. Dunne knew that her husband was selling his interest in a
corporation and was concerned about what the effect of the
litigation regarding the sale would be. When she told her
husband about her concerns, Mr. Dunne responded that he was
handling the sale according to his attorney’s written advice,
which was that Mr. Dunne had sold his interest in the corporation
and petitioners did not need to report the income listed on the
Schedule K-1. Because it was a complicated transaction, Mrs.
Dunne relied on Mr. Dunne and his attorney, and Mrs. Dunne was
not involved in the corporation at all.
Mrs. Dunne listed her average monthly household income as
$5,157 and expenses as $4,971.87. Petitioners were married and
living together at all relevant times, and Mrs. Dunne did not
suffer any spousal abuse or poor mental or physical health at any
relevant time. Mrs. Dunne has no knowledge of tax law except
that income tax returns are due on April 15.
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