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2. Knowledge of the event. The requesting spouse new
[sic] of the accident that her husband was in-
volved in. She also knew when it happened. In
prior and subsequent years, she filled out her own
tax returns in order to file separately. She
appears to have the knowledge of when a deduction
can be claimed.
3. Lack of economic hardship. The requesting spouse
has indicated that the Service [sic] is in the
process of garnishing her wages, and that will
leave them in a position where they cannot pay
their bills. However, the taxpayer also indicated
that they are living in a $300,000 home which will
be paid off in a couple of years. The taxpayers
have not considered refinancing the home to pay
the tax.
4. The additional liability is not solely due to the
non-requesting spouse. Even though the casualty
took place in the non-requesting spouse’s work
environment, the requesting spouse had benefit of
the results of that work. She elected to file the
joint return, knowing that the tax would be lower.
In conclusion, Carolyn meets the threshold requirements
for equitable relief. She does not have any of the
factors for equitable relief that are in her favor. It
is recommended that Carolyn not be granted innocent
spouse relief for 1995 under Section 6015(f).
On February 14, 2001, the IRS Appeals Office sent petitioner
a determination letter regarding petitioner’s claim under section
6015(f) with respect to taxable year 1995. That letter stated in
pertinent part:
We’re writing to tell you that we’ve made a decision
about your November 5, 1999 request for innocent spouse
relief under Section 6015(f) of the Internal Revenue
Code.
* * * * * * *
We’ve determined that, for the above tax year(s), we:
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