Eleanor Simon - Page 14

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               this section, equitable relief may be granted for                      
               underpayments after consideration of local factors                     
               (Tier 1) or for underpayments and understatements after                
               consideration of the centralized review factors (Tier                  
               2).  If an underpayment does not qualify under the Tier                
               1 factors, the Tier 2 factors should be considered.                    
               All understatement and deficiency cases should consider                
               the Tier 2 factors only.                                               
               Equitable relief under the Tier 1 factors will ordi-                   
               narily be granted under � 6015(f) if all of the follow-                
               ing four local factors are met:                                        
                    Spouse is divorced, separated, widowed, or lived                  
                    apart of the 12 months prior to the date request                  
                    Requesting spouse had a reasonable belief that the                
                    tax was paid or was going to be paid the time the                 
                    spouse signed the return.                                         
                    Undue hardship would result if equitable relief is                
                    not granted, and                                                  
                    The unpaid liability at issue is attributable to                  
                    the non-requesting spouse.                                        
               The IRS has authority to grant relief in circumstances                 
               where it is clearly inequitable to hold the requesting                 
               spouse liable for the tax and where a spouse had rea-                  
               sonable belief that the tax reported on his/her return                 
               would be paid.  The use of Tier 2 factors, however,                    
               should be limited to those cases where it would be                     
               clearly inequitable to hold the requesting spouse                      
               liable for the tax.                                                    
               Does the taxpayer qualify for equitable relief under                   
               IRC � 6015(f)?                                                         
               In my opinion, no, the taxpayer does not qualify for                   
               equitable relief.                                                      
               When considering equitable relief, the following fac-                  
               tors should be considered:                                             
                    Martial status                                                    
                    Economic hardship                                                 
                    Spousal abuse                                                     
                    Legal obligation of non-requesting spouse                         
                    No knowledge or reason to know                                    
                    Liability attributable to non-requesting spouse                   

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Last modified: May 25, 2011