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significantly benefit from Mr. Wiwi’s failure to pay tax on his
income and that this factor favors petitioner.
4. Compliance With Tax Laws
Petitioner filed returns for tax years following 1995 and
has complied with tax laws at least since 1995. Respondent
contends that petitioner was not in compliance with Federal tax
laws because taxes were underwithheld from petitioner’s income
for 1997. We disagree. Although taxes were underwithheld from
petitioner’s income for 1997, petitioner paid an amount equal to
the tax on her income for that year by paying $4,453 with the
1997 joint return she timely filed with Mr. Wiwi. Respondent
does not explain how the fact that petitioner was underwithheld
for one tax year shows that she was noncompliant with the tax
laws; respondent does not contend that petitioner’s payment for
1997 was late or inadequate or that she was underwithheld in any
other year. The fact that taxes were underwithheld from
petitioner for 1997 does not mean that she was not in compliance
with the tax laws. On the contrary, her timely payment of all
taxes she owed for that year shows she complied with the tax
laws.14 Rev. Proc. 2000-15, supra, lists tax compliance as a
factor which the Secretary will consider only against granting
relief. We conclude that this factor is neutral.
14 Respondent does not contend that petitioner is liable for
the penalty under sec. 6654 for failure to pay estimated tax for
1997.
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