Michael B. Butler and Jean Butler - Page 25




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          all the facts and circumstances, it is inequitable to hold the              
          other spouse liable for the deficiency in tax for such taxable              
          year attributable to such substantial understatement".                      
               We have consistently applied a "facts and circumstances"               
          analysis in considering the application of former section                   
          6013(e)(1)(D).  See Terzian v. Commissioner, 72 T.C. 1164, 1170             
          (1979); French v. Commissioner, T.C. Memo. 1996-38; Bouskos v.              
          Commissioner, T.C. Memo. 1987-574.  In Kistner v. Commissioner,             
          T.C. Memo. 1995-66, on remand from the Court of Appeals for the             
          Eleventh Circuit, we discussed the particular standards to be               
          applied when deciding the appropriate relief pursuant to section            
          6013(e)(1)(D).  Accordingly, we are well equipped to decide                 
          whether it was an abuse of discretion for respondent to deny                
          relief to petitioner under section 6015(f).  See Local 1219, Am.            
          Fed. of Gov. Employees v. Donovan, 683 F.2d 511, 516 (D.C. Cir.             
          1982) ("This limited determination is one which courts are well-            
          equipped to make.").7                                                       
               On the basis of the foregoing, we conclude that we have the            
          authority to review respondent's denial of petitioner's claim for           
          equitable relief pursuant to section 6015(f).  We discuss below             
          whether it was an abuse of discretion for respondent to deny                
          petitioner's equitable relief claim.                                        


          7    We note that respondent in Rev. Proc. 2000-15, 2000-5 I.R.B.           
          447, announced certain standards by which respondent will                   
          evaluate an equitable relief request.                                       




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