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was his determination that the underpayments were not solely
attributable to Mr. Foor.
On brief, respondent does not address Mr. Petroff’s
incorrect statement that a taxpayer is not eligible for equitable
relief for unpaid taxes that are attributable to her. Respondent
has not specifically argued on brief that this is a reason for
upholding the revenue agents’ determinations.4 In light of
petitioner’s testimony, respondent’s failure to specifically
argue this point, Mr. Petroff’s incorrect belief that petitioner
is not eligible for equitable relief for liabilities attributable
to her, and Mr. Petroff’s admission that he was not able to
review petitioner’s Forms W-2 for 5 of the 6 years in issue, we
conclude that no weight should be given to this factor.
At trial, petitioner’s testimony was consistent with her
assertions in the Form 8857, her responses to information
requests from respondent, and the statements outlined in the
revenue agents’ workpapers regarding Mr. Foor’s detrimental
actions and petitioner’s economic hardship and lack of
significant benefit from the unpaid taxes. Respondent has not
challenged petitioner’s truthfulness on these matters, and his
4The evidence in the record, including the revenue agents’
reports, does not adequately disclose the exact amounts, if any,
by which petitioner’s taxes were underwithheld. The record
reflects that any taxes on petitioner’s wages that were
underwithheld would represent only a relatively small proportion
of the underpayments for the years in issue.
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Last modified: May 25, 2011