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there’s an underpayment, the Court has to look at a different
part of the tax law, section 6015(f). This section lets one
spouse out of having to pay taxes if “it is inequitable to hold
the individual liable for any unpaid tax.” Sec. 6015(f). The
Commissioner writes a guide, called a “revenue procedure,” that
tells IRS employees what to look for in deciding questions of
“inequitability”. Washington v. Commissioner, 120 T.C. 137, 147-
152 (2003); Jonson v. Commissioner, 118 T.C. 106, 125-126 (2002),
affd. 353 F.3d 118 (10th Cir. 2003). Revenue Procedure 2000-15
was the procedure in effect when the Commissioner issued his
final notice of determination to Negoescu, and that’s the revenue
procedure that we look at in reviewing what he did. Rev. Proc.
2000-15, 2000-1 C.B. 447.
We begin by noting that Negoescu has the burden of proof,
Alt v. Commissioner, 119 T.C. 306, 311 (2002), affd. 101 Fed.
Appx. 34 (6th Cir. 2004). This means that she must show that the
Commissioner abused his discretion--in other words, that he was
arbitrary, capricious, or acting without sound basis in fact when
he denied her relief. Jonson, 118 T.C. at 125; Butler v.
Commissioner, 114 T.C. 276, 291-292 (2000).
The revenue procedure begins with a list of conditions that
a person trying to win innocent spouse relief must show. These
include proof that she filed a joint return, did not qualify for
relief under section 6015(b) or (c), and did not fraudulently
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