- 7 - Petitioner and Mr. Sturges filed an offer-in-compromise in an attempt to compromise their 2000 tax liability for $1 on October 22, 2001. On January 17, 2002, petitioner informed the revenue officer who was considering the offer-in-compromise that she had unsuccessfully tried to refinance the residence in order to raise the money to pay the tax. On January 23, 2002, with the offer-in-compromise still under consideration, petitioner and Mr. Sturges borrowed $115,000, increasing the mortgage debt to $477,000. They used the borrowed funds to pay the debt on their credit cards and their daughter’s college tuition. The IRS rejected the offer-in-compromise on or about April 23, 2002. On June 19, 2002, petitioner filed a Form 8857, Request for Innocent Spouse Relief, and petitioner and Mr. Sturges filed separate offers in compromise offering to compromise their 2000 tax liability for $200 and $1,000, respectively. The offers in compromise were rejected on August 19, 2002. On August 9, 2002, respondent sent petitioner a letter acknowledging receipt of petitioner’s request for innocent spouse relief and providing information on the claim process. Respondent included Publication 971, Innocent Spouse Relief, which explained the requirements for relief in detail, and a questionnaire to be completed by petitioner. The letter also informed petitioner that respondent was required to inform Mr. Sturges that petitioner had requested relief and that a separatePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011