Davis and Lois Etkin - Page 28

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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            
                                                             (continued...)           





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