Judith A. Madden - Page 20

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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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Last modified: May 25, 2011