- 10 -
the provisions providing relief from joint and several liability
are “‘designed to protect the innocent, not the intentionally
ignorant’”. Morello v. Commissioner, T.C. Memo. 2004-181
(quoting Dickey v. Commissioner, T.C. Memo. 1985-478).
Petitioner has not established that she did not have reason to
know the tax liabilities shown on her returns for the years at
issue would not be paid when she signed them and that it was
reasonable for her to believe Mr. Cowdery would pay those
liabilities. Consequently, petitioner does not satisfy the
knowledge or reason to know element of Rev. Proc. 2000-15, sec.
4.02 and does not qualify for equitable relief under that section
of the revenue procedure. For the sake of completeness, however,
we also address the economic hardship factor.
2. Economic Hardship
Rev. Proc. 2000-15, sec. 4.02 requires that the
determination of whether a requesting spouse will suffer economic
hardship be based on rules similar to those in section 301.6343-
1(b)(4), Proced. & Admin. Regs. Rev. Proc. 2000-15, sec.
4.02(1)(c). Economic hardship is present if satisfaction of the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011