William C. and Elaine Gaskins - Page 16

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          income, standard of living, and spending patterns; and the                  
          culpable spouse's evasiveness and deceit concerning the couple's            
          finances.  Stevens v. Commissioner, 872 F.2d 1499, 1505 (11th               
          Cir. 1989), affg. T.C. Memo. 1988-63; Flynn v. Commissioner, 93             
          T.C. 355, 365-366 (1989).  Factors to consider in determining               
          whether it would be inequitable to hold the taxpayer liable                 
          include: (1) Whether the taxpayer seeking relief significantly              
          benefited from the erroneous items (Purificato v. Commissioner, 9           
          F.3d 290, 296 (3d Cir. 1993), affg. T.C. Memo. 1992-580; Estate             
          of Krock v. Commissioner, 93 T.C. 672, 677 (1989)); (2) whether             
          the spouse seeking relief had been deserted by, or divorced or              
          separated from the culpable spouse (sec. 1.6013-5(b), Income Tax            
          Regs.); and (3) whether probable future hardships would be                  
          visited upon the innocent spouse if she is not relieved of                  
          liability (Sanders v. United States, 509 F.2d 162, 171 n.16 (5th            
          Cir. 1975)).                                                                
               Respondent's 1993 interrogatories and requests for documents           
          were designed to elicit information concerning these factors.  In           
          petitioners' October 21, 1993, answers to respondent's                      
          interrogatories, petitioners provided information on petitioners'           
          educational levels and marital status, and that petitioner wives            
          handled the household finances.  Petitioners declined to answer             
          respondent's interrogatories regarding their assets and                     
          expenditures.  In their responses to respondent's requests for              






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