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the additions to tax and penalties. Petitioner does reference
our finding that respondent’s denial of equitable relief with
respect to the penalties was an abuse of discretion. In any
event, we believe that respondent’s position with respect to the
additions to tax and penalties had a reasonable basis in both law
and fact.
The first case applying section 6015(f) to additions to tax
and penalties was Cheshire v. Commissioner, 115 T.C. 183 (2000).
In that case, we provided the following guidance in determining
whether the Commissioner has abused his discretion in denying
equitable relief in situations involving additions to tax or
penalties:
In our opinion, it is an abuse of discretion to deny
relief under section 6015(f) in an addition to tax or
penalty situation when on an individual basis the
putative innocent spouse meets the statutory standard
generally applied to all taxpayers that shows the
addition to tax or penalty is inapplicable. [Id. at
199.]
The Cheshire case was not filed until August 30, 2000, less than
8 months before the trial was held in this case. The Court of
Appeals for the Fifth Circuit recently affirmed our decision, on
February 8, 2002. Cheshire v. Commissioner, 282 F.3d 326 (5th
Cir. 2002).
We have already found that respondent’s position with
respect to the issue of petitioner’s entitlement to relief under
section 6015 for the deficiency determinations contained in the
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