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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61, 2003-2 C.B. 296, which superseded Rev.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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