- 37 -
ance and the requesting spouse agree that all seven of
these test have been met.
Reg. 1.6015-2(d) provides guidelines to be used to
determine whether or not equitable relief should be
granted. There are factors listed that weigh in favor
of relief and factors listed that weigh against relief.
Neither list is all-inclusive. Other factor can be
considered as well. I will discuss each of the factors
as they relate to the facts in this case.
Factors Weighing For Relief
1. Marital status--Janet lived as husband and wife
with Paul during the entire year for which there is the
underpayment and was also living with him at the time
she signed the return showing the underpayment. She
was legally separated from Paul on the date she filed
the Form 8857. The fact that Janet was living with
Paul during all of 1998 and at the time she signed the
return causes this factor not to weigh in favor of
granting relief.
2. Economic hardship--Janet has not demonstrated that
the payment of the jointly owed tax by her would create
an economic hardship. Consequently, this factor does
not weigh in favor of granting relief.
3. Abuse--There was no evidence of abuse. Conse-
quently, this factor does not weigh in favor of grant-
ing relief.
4. Knowledge or reason to know--Janet is college
educated. She signed the return, which shows a balance
due. Even a cursory review of the return would have
alerted Janet to the fact that there was a balance due.
She had not presented any evidence to show that she had
a reasonable belief that Paul was going to pay the
balance due. In view of these facts, this factor does
not weigh in favor of relief.
5. Spouse’s legal obligation--There is no legal
agreement or agreement between the spouses that pro-
vides that Paul has an obligation to pay the amount
owed. Accordingly, this factor does not weigh in favor
of relief.
Page: Previous 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 NextLast modified: May 25, 2011