Tracy Jodette August - Page 7




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          provides elements under which relief under section 6015(f) will             
          ordinarily be granted in a case in which a tax liability reported           
          on a joint return is unpaid.  These elements are:                           
                    (a) At the time relief is requested, the                          
               requesting spouse is no longer married to, or is                       
               legally separated from, the nonrequesting spouse * * *;                
                    (b) At the time the return was signed, the                        
               requesting spouse had no knowledge or reason to know                   
               that the tax would not be paid. * * *; and                             
                    (c) The requesting spouse will suffer economic                    
               hardship if relief is not granted.  For purposes of                    
               this section, the determination of whether a requesting                
               spouse will suffer economic hardship will be made by                   
               the Commissioner or the Commissioner’s delegate, and                   
               will be based on rules similar to those provided in                    
               section 301.6343-1(b)(4) of the Regulations on                         
               Procedure and Administration.                                          
          Rev. Proc. 2000-15, sec. 4.02(1), 2000-1 C.B. at 448.  First, at            
          the time relief was requested in March 1999, petitioner was no              
          longer married to Mr. August.  Second, petitioner testified that,           
          during their marriage, she was completely dependent upon Mr.                
          August regarding the filing of their tax returns and the payment            
          of the taxes.  Although Mr. August offered conflicting testimony            
          on this point, we found petitioner to be credible after having              
          observed her appearance and demeanor at trial.  On the basis of             
          her limited education, marriage at age 15, history of mental                
          illness, and dependence on Mr. August for tax matters, we                   
          conclude that petitioner had no knowledge or reason to know that            
          the taxes would not be paid at the time the returns were signed.            







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