Patricia A. Hendricks and John J. Hendricks - Page 19

                                       - 19 -                                         
          considerable economic hardship if relief from the liabilities               
          were not granted, given the Hendrickses’ current level of income            
          and assets.  See Ewing v. Commissioner, 122 T.C. 32, 47 (2004).             
               We also consider the fact that the Hendrickses have made a             
          good faith effort to comply with Federal income tax laws in the             
          tax years following 1983.  Except for the years they reported               
          loss activity from Boulder Oil and Gas, i.e., 1980-83, the                  
          Hendrickses neither have had their Federal tax returns examined,            
          nor have they had taxes in excess of the amount reported on their           
          returns assessed.  Furthermore, the Hendrickses have made an                
          honest attempt to pay their tax liabilities when they were able             
          and did so as quickly as possible.  The Hendrickses paid in full            
          the balances due for 1980-82 by the end of 1993, and have already           
          paid more than $110,000 toward the balance due for 1983, $63,176            
          of which represents the underpayment attributable to Mr.                    
          Hendricks’s investment in Boulder Oil and Gas.                              
               Considering that petitioner did not receive significant                
          benefit from the understatements, that petitioner would suffer              
          considerable economic hardship if relief were denied, and that              
          the Hendrickses have complied with Federal tax laws at least                
          since 1983, we conclude that on the basis of all the facts and              
          circumstances it would be inequitable to hold petitioner liable             
          for the understatement of tax for 1983.  Petitioner has satisfied           
          the section 6015(b)(1)(D) requirement.                                      

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011