A does have reason to know of the income but this does not disqualify A's eligibility for relief (as with traditional relief), because it is only one negative factor to be considered along with all other factors.
Hilton, TC Memo 1990-379 (holding that a spouse did not have reason to know of her husband's income from illegal activities because she had no actual knowledge of the activity and did not benefit from the illegal income).
A taxpayer is deemed to have knowledge of an omission if a reasonably prudent person could be expected to know of it.
The fact that by signing the returns she avoided additional abuse did not qualify as duress because she did not know of an error on the return that would cause her to fear signing it.
In the deposition Bantle testified that he didn't know of a statement by the National Cancer Advisory Board in February 1985 that "there is sufficient evidence for a cause-and-effect relationship between smokeless-tobacco use and human cancer.
Bantle said he did know of this report, but hadn't read it.
Do you know of
any other Market Letter that can say that and have the evidence to back it up?
And I got this telephone call from the doctor, saying that his [blood] pressure had continued to drop, but they would keep giving him medicine to bring it back up, he said, "But we have given him the last thing that we know of
," he said, "and if it drops this time, there's nothing more that we can do.
Men were less likely to know of domestic abuse than women, as were retirees compared with full-time workers.
People who know of abuse, who hear it happen next door or (who hear it from others), they definitely can help,'' Fisher said.
The requesting spouse established that at the time that the return was signed, he had no knowledge or reason to know of a tax understatement;
6015(b), that the requesting spouse had no knowledge or reason to know of a tax understatement at the time the taxpayers filed the joint return, was considered by the Tax Court in Butler, 114 TC 276 (2000).
The innocent spouse must establish that, in signing the return, he or she did not know of, and had no reason to know of, the omission.
In addressing the knowledge standard, the court only considered whether she had reason to know of the understatements, focusing on whether a reasonably prudent person who had sufficient knowledge of the facts underlying the claimed deductions would question them.
Erdahl relief because she knew or had reason to know of
the underlying circumstances which gave rise to the disallowed losses.