Joyce A. Siddons, Petitioner, and Richard J. Siddons, Intervenor - Page 10

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          Furthermore, intervenor had already made an estimated tax payment           
          of $1,400 to cover the self-employment taxes for the year 1998.             
          Petitioner had no reason to believe that there were insufficient            
          funds to cover the income tax liability, or that there were                 
          insufficient funds for intervenor to pay the tax.                           
               Petitioner contends she relied on intervenor’s assurance               
          that he would pay the 1998 tax liability.  Absent any conflicting           
          evidence or testimony, the Court finds petitioner’s testimony               
          credible and holds that it was reasonable for her to believe that           
          intervenor would pay the reported liability.  Wiest v.                      
          Commissioner, supra.  Therefore, petitioner has satisfied the               
          second element and qualifies for relief under section 6015(f).8             
          Respondent abused his discretion in denying her claim for relief,           
          and petitioner, therefore, is relieved of the entire amount of              
          the liability.                                                              
               Reviewed and adopted as the report of the Small Tax Case               
                                                  Decision will be entered            
                                             for petitioner.                          

               8Rev. Proc. 2000-15, sec. 4.03, 2000-1 C.B. at 447, 448,               
          provides a facts and circumstances test whereby a taxpayer may              
          also qualify for relief under sec. 6015(f) (facts and                       
          circumstances test).  Although respondent and petitioner                    
          addressed at trial many of the factors discussed in the facts and           
          circumstances test, it is not necessary for the Court to address            
          them because they are examined only when a taxpayer fails to                
          satisfy the three-element test.                                             

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