Ruth Ferrarese - Page 9




                                        - 9 -                                         
          checking account shows that it contains enough to pay only a tiny           
          fraction of the deficiency for 1983.                                        
               Respondent contends that petitioner will not suffer economic           
          hardship if relief is denied because her children and family pay            
          some of her and Ferrarese’s living expenses. Respondent                     
          apparently assumes that petitioner’s children would pay the 1983            
          taxes, and that, as a result, petitioner would suffer no hardship           
          if held jointly liable for those taxes.  We disagree.  First,               
          there is no evidence that petitioner’s children would or could              
          pay the 1983 taxes; second, we believe it would be a hardship to            
          compel petitioner to ask her children to do so.  We conclude that           
          petitioner will suffer economic hardship if she is not relieved             
          of joint liability.                                                         
               2.   Significant Benefit                                               
               Respondent contends that petitioner significantly benefited            
          from the embezzlement income omitted from petitioner’s and                  
          Ferrarese’s return for 1983.  We disagree.  In Ferrarese I, we              
          found that petitioner’s expenditures during 1981-83 were neither            
          unusual nor lavish and did not suggest that petitioner                      
          significantly benefited from the embezzlement income.                       
          Petitioner’s testimony in this case was consistent with our                 
          findings in her prior case, and respondent did not cross-examine            
          petitioner or offer contrary evidence.  We conclude that                    








Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011