Herbert L. Mitchell, deceased, and Ella Marie Mitchell - Page 13




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            standard in Cheshire she does not qualify for relief pursuant to                           
            section 6015(c).                                                                           
                  The final opportunity for relief under the statute lies in                           
            section 6015(f), which provides as follows:                                                
                  (f) Equitable Relief.--Under procedures prescribed                                   
                  by the Secretary, if–                                                                
                              (1) taking into account all the facts and                                
                        circumstances, it is inequitable to hold the                                   
                        individual liable for any unpaid tax or any                                    
                        deficiency (or any portion of either); and                                     
                              (2) relief is not available to such                                      
                        individual under subsection (b) or (c),                                        
                  the Secretary may relieve such individual of such                                    
                  liability.                                                                           
            We have jurisdiction to review, for abuse of discretion, the                               
            Commissioner’s denial of relief under this subsection.  See                                
            Butler v. Commissioner, 114 T.C. 276, 292 (2000); see also                                 
            Fernandez v. Commissioner, 114 T.C. 324 (2000).  In this case,                             
            petitioner significantly benefited from the omitted income.  See                           
            Kistner v. Commissioner, T.C. Memo. 1995-66 (cited in Butler v.                            
            Commissioner, supra at 291).  Among other things, she made                                 

                  5(...continued)                                                                      
            concerning whether Mr. Browne advised petitioner that Mr.                                  
            Mitchell’s failure to effect a rollover of the transfer refund                             
            distribution within 60 days of receipt could produce adverse tax                           
            consequences.  On the basis of the demeanor evidence, as well as                           
            Mr. Browne’s apparent involvement in the preparation of a                                  
            counterfeit Form 1099 to be submitted to respondent’s agents, we                           
            find petitioner’s version of events more credible and conclude                             
            that she had no knowledge that her 1991 return when signed was                             
            incorrect.                                                                                 





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