- 58 -
With respect to the marital status factor, petitioner and
Mr. Korchak were still married and living together at the time of
the trial.
With respect to the economic hardship factor, pursuant to
Madison Recycling Associates v. Commissioner, T.C. Memo. 2001-85,
respondent assessed against petitioner and Mr. Korchak a defi-
ciency of $140,388 in tax for their taxable year 1982 and inter-
est thereon as of October 3, 2003, of $1,107,797.85 resulting
from the disallowance of the claimed $58,089 Madison Recycling
loss and the claimed Madison Recycling tax credits of $114,407.
If the Court were to deny petitioner’s claim under section 6015,
petitioner and Mr. Korchak would be jointly and severally liable
for that assessed deficiency and that assessed interest, none of
which had been paid as of the time of the trial. Moreover,
pursuant to Korchak v. Commissioner, T.C. Memo. 2005-244, and the
parties’ stipulation to be bound, see supra note 3, if the Court
were to deny petitioner’s claim under section 6015, petitioner
and Mr. Korchak would be jointly and severally liable for addi-
tions to tax for their taxable year 1982 under sections
6653(a)(1), 6653(a)(2), and 6659 of $7,019.40, 50 percent of the
interest due on the assessed deficiency of $140,388, and
$34,322.10, respectively.
Petitioner contends that at the time of the trial the total
liability with respect to her taxable year 1982 “greatly exceeds”
Page: Previous 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 NextLast modified: May 25, 2011