- 14 - liability would not be paid at the time that the return was signed; (3) the liability for which relief is sought is attributable to the nonrequesting spouse; and (4) the nonrequesting spouse has a legal obligation pursuant to a divorce decree or agreement to pay the outstanding liability (this factor weighs against relief only if the requesting spouse has the obligation). Respondent concedes that the economic hardship factor weighs in petitioner’s favor. The knowledge or reason to know factor weighs against petitioner for the reasons discussed above. The attribution factor weighs against petitioner because a portion of the income tax liabilities for 1992 through 1995 is attributable to her (i.e., she allowed a lesser amount of Federal income tax to be withheld from her wages than that which became due on her portion of Mazzilli’s and her joint income for those years). Respondent concedes that the legal obligation factor weighs in petitioner’s favor. Based on our examination of the facts and circumstances in this case, some of the factors in Rev. Proc. 2000-15, sec. 4.03, 2000-1 C.B. at 448, are neutral. With respect to the factors that are not neutral, those weighing against granting petitioner relief outweigh those weighing in favor of granting her relief. Petitioner’s situation is unfortunate, but we cannot conclude that respondent abused respondent’s discretion by acting arbitrarily, capriciously, or without sound basis in fact inPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011