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petitioner knew when she signed the 2000 joint return that the
unpaid tax of $141,302 would not be paid.
This factor weighs against granting relief to petitioner.
3. Other Facts
We consider additional facts that affect the analysis of
whether respondent abused his discretion in denying petitioner
equitable relief under section 6015(f). We find it significant
that petitioner and Mr. Sturges refinanced the residence on two
occasions after they filed the joint return and submitted offers
in compromise. They used the $265,000 proceeds from those loans
to pay credit card debt and their daughter’s tuition. We do not
think that taxpayers should be allowed to favor other creditors
over the Government and then claim that equity requires that they
be relieved of their obligations to pay the debt to the
Government. We find that using the proceeds from the refinancing
of the residence to pay other creditors weighs heavily against
granting petitioner the requested relief.
D. Conclusion
After considering all of the facts and circumstances, we
find that it would not be inequitable to hold petitioner liable
for payment of the tax. We conclude that respondent did not
abuse his discretion in denying petitioner equitable relief from
joint and several liability under section 6015(f).
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