Nancy B. Doyle - Page 13




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               Relief-seeking taxpayers must also establish, inter alia,              
          that “taking into account all the facts and circumstances, it is            
          inequitable to hold the * * * [electing taxpayer] liable for the            
          deficiency in tax for such taxable year attributable to such                
          understatement”.  Sec. 6015(b)(1)(D) (emphasis added).  In                  
          determining the equities, the “Relevant factors include [but are            
          not limited to] significant benefits received as a result of the            
          understatements by the spouse claiming relief, [and] any                    
          participation in wrongdoing on the part of the ‘innocent’                   
          spouse”.10  Friedman v. Commissioner, 53 F.3d 523, 532 (2d Cir.             
          1995), affg. in part and revg. in part on another ground T.C.               
          Memo. 1993-549; see S. Rept. 91-1537, at 3-4 (1970), 1971-1 C.B.            
          606, 607-608.11  “Whether the failure to report correctly tax               
          liability results from ‘concealment, overreaching, or any other             
          wrongdoing’ on the part of the ‘guilty’ spouse is also relevant.”           
          Hayman v. Commissioner, supra at 1262; see Jonson v.                        
          Commissioner, supra.                                                        



               10Guidance in determining “whether it would be inequitable             
          to hold a requesting spouse” liable can also be found in Rev.               
          Proc. 2000-15, 2000-1 C.B. 447.  See sec. 1.6015-2(d), Income Tax           
          Regs.                                                                       
               11Since sec. 6015(b)(1) is similar to former sec.                      
          6013(e)(1), we may look to cases interpreting former sec.                   
          6013(e)(1) for guidance when analyzing sec. 6015(b)(1).  Butler             
          v. Commissioner, 114 T.C. 276, 283 (2000); Rowe v. Commissioner,            
          T.C. Memo. 2001-325.                                                        






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