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transfer to Lois Etkin of a jointly owned car and boat between
March 28, 2001, and January 1, 2003,7 were part of a fraudulent
scheme to frustrate the collection of their delinquent taxes.
Further, respondent argues that these assets constitute
“disqualified assets” and that therefore Lois Etkin also fails to
meet the sixth threshold requirement. Section 6015(c)(4)(B)(i)
provides that a “disqualified asset” is any property or right to
property transferred to an individual making the election by the
other person filing the joint return if the principal purpose of
the transfer is the avoidance of tax or the payment of tax.8 If
7Respondent derives these dates from the representations
made by Lois Etkin on two different Innocent Spouse
Questionnaires for Electing Spouse that were submitted on Mar.
28, 2001, and Jan. 1, 2003. The first form was submitted for the
consideration of Lois Etkin’s sec. 6015(f) claim in connection
with petitioners’ hearing for the taxable years 1997-99, and the
second form was submitted in connection with the consideration of
Lois Etkin’s sec. 6015(f) claim in connection with petitioners’
hearing for the taxable year 2000. On the March 2001
questionnaire, Lois Etkin stated under penalty of perjury that
Davis Etkin added her name to the title of the home “within the
last year or two.” In completing his portion of the form, Davis
Etkin stated that no assets were transferred between him and Lois
Etkin except for the house. By the time Lois Etkin submitted the
second questionnaire pertaining to the sec. 6015(f) relief
request for the taxable year 2000 in January 2003, the answer to
this question changed. Lois Etkin stated that her husband had
transferred a jointly owned car and a boat to her. Therefore,
respondent deduced that the house had been transferred within 2
years (or less) before Mar. 28, 2001, and that the boat and the
car had been transferred between Mar. 28, 2001, and Jan. 1, 2003.
When asked at trial about the exact dates, petitioners were
unable to recall.
8Sec. 6015(c)(4)(B)(ii)(I) provides a presumption that any
transfer which is made after the date which is 1 year before the
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