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relief is available to taxpayers who are not otherwise entitled
to section 6015 relief if, taking into account all the facts and
circumstances, it is inequitable to hold the taxpayer liable for
any unpaid tax or deficiency (or portion thereof). Sec.
6015(f)(1) and (2). Because equitable relief is discretionary,
we review the Commissioner’s denial of relief for an abuse of his
discretion. Cheshire v. Commissioner, supra at 198. The
Commissioner’s exercise of discretion is entitled to due
deference; in order to prevail, the taxpayer must demonstrate
that in not granting relief, the Commissioner exercised his
discretion arbitrarily, capriciously, or without sound basis in
fact or law. Woodral v. Commissioner, 112 T.C. 19, 23 (1999);
Mailman v. Commissioner, 91 T.C. 1079, 1082-1084 (1988).
As directed by section 6015(f), the Commissioner has
prescribed procedures in Revenue Procedure 2000-15, 2000-1 C.B.
447, that the Commissioner will use in determining whether an
individual qualifies for relief under that section. Section 4.03
of the revenue procedure lists several nonexclusive factors to be
considered in determining eligibility for relief. In his trial
memorandum, respondent explained his application of these factors
in the present case as follows:
The factors favoring the granting of relief to
petitioner herein are: (1) petitioner is divorced from
Kimberly; (2) Kimberly is under an obligation to pay the
liability; and (3) the liability for which relief is sought
is solely attributable to Kimberly.
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Last modified: May 25, 2011