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whether respondent abused his discretion in denying equitable
relief under section 6015(f) for the underpayment or the
deficiency. Although petitioner’s marital status and the fact
that the liability for which relief is sought is attributable to
Mr. Lathrop’s items of income weigh in favor of granting relief,
the Court is unconvinced that it would be inequitable to deny
petitioner relief under section 6015(f).
For a taxpayer who seeks relief from an underpayment of
income tax due, Rev. Proc. 2000-15, sec. 4.03(2)(b), questions
whether the requesting spouse knew or had reason to know that the
income tax liability would not be paid by the nonrequesting
spouse. As previously noted, petitioner admitted at trial and on
her Form 12510 that she and her former spouse were experiencing
financial difficulties and knew that they were unable to pay the
reported tax liability at the time the return was signed.
Petitioner’s knowledge that the reported liability would not be
paid when the return was signed weighs heavily against granting
her relief. Rev. Proc. 2000-15, sec. 4.03(2)(b), 2000-1 C.B.
449.
In the case of an income tax liability that arises from a
deficiency, a finding that the requesting spouse knew or had
reason to know of the item giving rise to the deficiency is an
extremely strong factor weighing against relief. Id. Thus,
petitioner must establish that she did not know and had no reason
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