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joint return will ordinarily be granted by the Commissioner if
all three of the following criteria are met: (1) The requesting
spouse is divorced, is legally separated, or has been physically
separated for 1 year from the nonrequesting spouse at the time
relief is requested; (2) the requesting spouse did not know or
have reason to know that the income tax liability would not be
paid at the time the joint return was signed; and (3) the
requesting spouse will, absent relief, suffer economic hardship.
Although she was divorced from her husband at the time
relief was requested, petitioner was aware that the income tax
liability for taxable year 2000 would not be paid at the time she
signed the return. Petitioner admitted at trial that, even had
she reviewed the return and discovered the underpayment, she and
her former spouse did not have the funds to pay the tax
liability. Additionally, in her Form 12510, petitioner indicated
that there were no funds available to pay the tax at the time of
filing because she and her former spouse were having financial
problems at that time and had difficulty paying monthly living
expenses. Because petitioner knew that the income tax liability
would not be paid at the time the return was signed, there was no
abuse of discretion in denying her relief from the underpayment
pursuant to Rev. Proc. 2000-15, sec. 4.02.
Rev. Proc. 2000-15, sec 4.03, 2000-1 C.B. at 448, provides
factors to be evaluated for requests for relief under section
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Last modified: May 25, 2011