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reason to know at the time of filing the tax returns in 2000 that
the tax liabilities would not be paid.
The nonrequesting spouse’s legal obligation positive factor
does not weigh in favor of relief. On her Form 886-A, petitioner
stated that neither petitioner nor Mr. George entered into any
enforceable agreements related to the payment of the tax
liabilities.
The liability attribution positive factor does not weigh in
favor of relief. Petitioner concedes that the liability for
which relief is sought is not solely attributable to Mr. George.
The facts and circumstances test provides the following
negative factors weighing against relief:
(2) Factors weighing against relief. The factors
weighing against relief include, but are not limited
to, the following:
(a) Attributable to the requesting spouse.
The unpaid liability or item giving rise to the
deficiency is attributable to the requesting
spouse [the liability attribution negative
factor].
(b) Knowledge, or reason to know. A
requesting spouse knew or had reason to know of
the item giving rise to a deficiency or that the
reported liability would be unpaid at the time the
return was signed [the knowledge negative factor].
This is an extremely strong factor weighing
against relief. Nonetheless, when the factors in
favor of equitable relief are unusually strong, it
may be appropriate to grant relief under � 6015(f)
in limited situations where a requesting spouse
knew or had reason to know that the liability
would not be paid, and in very limited situations
where the requesting spouse knew or had reason to
know of an item giving rise to a deficiency.
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