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equitable relief (i.e., as neutral). Id.
In favor of petitioner here are the factors of marital
status, attribution, and significant benefit. Petitioner’s
failure to show that he had no reason to know that the tax would
not be paid or that payment of part or all of the tax would cause
him economic hardship are negative factors. Under Rev. Proc.
2000-15, sec. 4.03(2)(b), reason to know that the tax would not
be paid “is an extremely strong factor weighing against relief.”
The revenue procedure provision provides that “when the factors
in favor of equitable relief are unusually strong, it may be
appropriate to grant relief under section 6015(f) in limited
situations” where the spouse requesting relief had reason to know
of the understatement. The Court finds no “unusually strong”
factors in favor of equitable relief here.
Although petitioner has three factors in his favor and only
two that weigh against him, in view of the language of Rev. Proc.
2000-15, sec. 4.03(2)(b), the Court finds, considering all the
facts and circumstances, that respondent did not abuse his
discretion in denying petitioner equitable relief from joint and
severable liability under section 6015(f).
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered for
respondent.
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Last modified: May 25, 2011