E. Carolyn Mellen - Page 18




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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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