- 3 -
On January 25, 1995, in an attempt to protect themselves
from a judgment in the lawsuit, petitioner and Dr. Velez filed
for bankruptcy under chapter 7 of the Bankruptcy Code, 11 U.S.C.
sections 701-784 (2000). They received a discharge of
dischargeable debts on May 25, 1995. Because of the ongoing
lawsuit against him, Dr. Velez was forced to accept a series of
lower paying positions and was eventually unemployed. He started
a consulting business to provide income for his family.
During the years 1996 through 1999, Dr. Velez handled the
family finances, hiring and submitting information to a certified
public accountant for preparation of their annual income tax
returns.
Petitioner and Dr. Velez timely filed a joint Federal income
tax return for 1996 reporting tax due of $13,084. The return was
filed without remittance. All of the income reported on the
return was attributable to Dr. Velez. When petitioner signed the
return for 1996, she was aware that the return was being filed
without remittance. Dr. Velez told petitioner that the return
was being filed without remittance because he did not have the
money to pay the tax. Dr. Velez, however, told petitioner that
he anticipated obtaining a job in the “medical field” in the
“near future” and that he was attempting to work out a payment
agreement with the Internal Revenue Service (IRS).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: March 27, 2008