Wayne Payne and Dorene J. Payne - Page 23

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          guidelines that are considered in determining whether an                    
          individual qualifies for relief under section 6015(f).5  Rev.               
          Proc. 2000-15, sec. 4.01, 2000-1 C.B. at 448, lists seven                   
          threshold conditions that must be satisfied before the                      
          Commissioner will consider a request for relief under section               
          6015(f).  One of these threshold factors is that the requesting             
          spouse did not file the return with fraudulent intent.  Id.                 
               We held above that petitioners filed their 1993, 1994, and             
          1995 returns fraudulently with the intent to evade tax.                     
          Respondent has shown that both petitioners committed fraud in the           
          filing of the false returns.  Mrs. Payne was very involved in               
          running the business, and we are convinced that she and Mr. Payne           
          together operated HRDC in a way that concealed the cash they                
          received to avoid tax.  Mrs. Payne knew that Mr. Payne cashed the           
          payments from the extras; while working in HRDC’s offices, she              
          actively separated out the checks to be cashed from those to be             
          deposited in the bank.  The cash was used for Mr. and Mrs.                  
          Payne’s personal expenses, such as when Ms. Enerson would cash              

               5On Aug. 11, 2003, the Commissioner issued Rev. Proc. 2003-            
          61, 2003-2 C.B. 296, which superseded Rev. Proc. 2000-15, 2000-1            
          C.B. 447, effective for requests for relief filed on or after               
          Nov. 1, 2003, and for those pending on Nov. 1, 2003, for which no           
          preliminary determination letter has been issued as of Nov. 1,              
          2003.  The threshold requirement that a requesting spouse not               
          having filed a return with fraudulent intent in order to be                 
          considered for relief under sec. 6015(f) is present in both                 
          revenue procedures.                                                         

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