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(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.
Except as otherwise provided in section 6015, petitioner
bears the burden of proof. Rule 142(a). Although section
7491(a) may operate in specified circumstances to place the
burden on the Commissioner, subsection (a)(3) of that section
provides that the burden-shifting does not apply “to any issue if
any other provision of this title provides for a specific burden
of proof with respect to such issue.” Section 6015(b)(1)(C)
expressly requires the spouse electing relief to establish that
he or she did not know or have reason to know of the
understatement. Section 6015(c)(2) and (c)(3)(C) explicitly
place the burden of proof on respondent to establish that the
requesting spouse had knowledge of the item giving rise to the
deficiency.
We point out at this juncture that in deciding whether
petitioner has carried his burden of proof, witness credibility
is an important consideration. See Ishizaki v. Commissioner,
T.C. Memo. 2001-318. We are not required to accept petitioner’s
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Last modified: May 25, 2011