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Of the above factors, the ones in the taxpayer’s favor
are
Marital status
Liability attributable to non-requesting spouse
In my opinion, these factors are outweighed by the fact
this year was the second year of withdrawals from the
NRS’s IRA accounts. The likelihood that she did not
know of the withdrawals from beginning in 1997, that
were included on the 1997 tax return, is diminished in
the second year. In addition, the withdrawals were
included in the income of the 1998 tax return and the
return clearly reflected a balance due In excess of
$12,000. It is clearly not believable that the tax-
payer did not know of this liability due.
She further provided no evidence that she believed the
tax would be paid at the time the tax return was filed.
EVALUATION
Based on the above discussion, the taxpayer has failed
to show that she is entitled to relief under either IRC
� 6015(b)(c) or (f). I recommend that the determina-
tion of the Innocent Spouse Unit is sustained in 1998..
[Reproduced literally.]
Also on July 22, 2004, the Appeals Office sent to petitioner
a “Notice of Determination Concerning Your Request for Relief
from Joint and Several Liability under Section 6015” (notice of
determination). In the notice of determination, the Appeals
Office denied petitioner relief under section 6015 with respect
to taxable year 1998. The notice of determination stated in
pertinent part: “For 1998, you do not qualify for relief under
IRC section 6015(b)(c) or (f). [Reproduced literally.]”
As of the time of the trial in this case, Mr. Simon contin-
ued to maintain that Mr. Simon’s 1998 retirement plan distribu-
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