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In this case, petitioner has presented no credible nontax
reason for the transfer of assets pursuant to the separation
agreement. Mr. Ohrman’s gambling addiction, long known to her,
did not cause a legal separation. Petitioner reacted to that
situation by taking practical control of the family finances.
These circumstances lead us to the ultimate conclusion that
petitioner obtained a legal separation in order to shield as many
assets and as much of the family’s income as possible from the
1999 tax deficiency.
Furthermore, it is not inequitable to hold petitioner liable
for the 1999 tax deficiency because she would not suffer a major
financial hardship as a result. Petitioner holds assets that she
could use to pay the 1999 tax deficiency. In addition, her
family’s living expenses are all paid from Mr. Ohrman’s earnings.
Therefore, although her circumstances may be unfortunate, they do
not compel relief from joint and several tax liability under
section 6015(b).
Section 6015(c) Analysis
Because petitioner cannot avoid liability for the deficiency
arising from the joint 1999 return under section 6015(b), we now
turn our attention to her claim for relief from joint and several
liability under section 6015(c). Section 6015(c) allows a
taxpayer, who is eligible and so elects, to limit his or her
liability to the portion of a deficiency that is properly
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