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In the Supplement Mr. Kennedy concedes that Janet did
sign the return. He argues:
~ Janet was legally separated from Paul at the
time the Form 8857 was filed. (Compliance
acknowledged this fact.);
~ Janet was a victim of abuse by her husband.
(He did not present any evidence to support
this contention.);
~ Janet has no recollection as to whether or
not the return she signed for 1998 showed a
balance due;
~ Janet had never been an employee of Paul’s
corporation. (No evidence was provided to
support this contention.);
~ Janet had no reason to believe that the tax
due would remain unpaid past the due date of
the return. (There is no evidence to show
why she believed it would be timely paid or
from what source of funds she expected it to
be timely paid.);
~ Janet would suffer economic hardship if the
relief sought is not granted. (The Supple-
mental Protest does not explain how or why.);
~ Under the Separation Agreement, neither
spouse has a legal obligation to pay the
liability in issue; and
~ The total unpaid liability is attributable to
Paul’s income. (This point is not in dis-
pute.)
LAW AND ANALYSIS
Equitable relief will be granted under IRC 6015(f) if
after considering all the facts and circumstances it
would be inequitable to hold the requesting spouse
liable for the underpayment. Rev. Proc. 2000-15 pro-
vides seven threshold conditions that must be met
before the IRS will consider a request for equitable
relief under IRC 6015(f). In the instant case Compli-
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