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Additionally, petitioner’s former spouse has a legal obligation
pursuant to their divorce decree to pay the unpaid 1995 tax
liability. The record does not reflect that petitioner
benefitted beyond normal support from the unpaid tax liability.
Petitioner has also made a good faith effort to comply with
Federal tax laws in the tax years following the tax year to which
the request for relief relates. Finally, the unpaid 1995 tax
liability is attributable to the self-employment income of
petitioner’s former spouse. The only factor not weighing in
favor of granting petitioner equitable relief is that, as
discussed above, she will not suffer economic hardship if relief
is denied.
Petitioner has presented a strong case for relief from joint
liability under the factors promulgated by the Commissioner in
Rev. Proc. 2000-15, sec. 4.03. All of the factors except one,
economic hardship, weigh in favor of granting relief to
petitioner. While the economic hardship factor weighs against
petitioner, it does not outweigh the positive factors.
Furthermore, denying relief entirely on the basis of that one
factor would elevate that factor to the status of determinative.
We are unwilling to proceed by doing so. Accordingly, we hold
that petitioner is entitled to relief under section 6015(f) and
that respondent’s failure to grant that relief was an abuse of
discretion.
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