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Section 6015(c) Relief
As explained, respondent concluded that petitioner qualified
generally for relief under section 6015(c). Respondent, however,
concluded that only 50 percent of the $6,452 deficiency was
attributable to John and therefore granted relief to petitioner
from joint liability under section 6015(c) only as to 50 percent
(or $3,226) of the $6,452 tax deficiency.
The entire $6,452 deficiency, however, is attributable to
John. John owned all of MGI beneficially, and whatever interest
in MGI petitioner may have held was only as a nominee.
Petitioner has established that none of the income from MGI
should be attributable to her. Further, John, not petitioner,
owned the Castle Rock home to which the disallowed mortgage
interest deductions relate.
Petitioner therefore qualifies under section 6015(c) for
relief from joint liability as to the entire $6,452 deficiency.5
5 Sec. 6015(g)(3), however, provides that no credit or
refund will be allowed as a result of sec. 6015(c) relief.
Herein, the entire $6,452 deficiency has been paid, and therefore
petitioner is not entitled to a refund of any amounts that
petitioner paid on the deficiency. If, however, we were to hold
that petitioner did not qualify for relief from the deficiency
under sec. 6015(c), and then grant petitioner equitable relief
from the deficiency under sec. 6015(f), under Rev. Proc. 2003-61,
sec. 4.04(1), 2003-2 C.B. 296, 299, petitioner apparently still
would be disallowed a refund of amounts petitioner has paid on
the deficiency (i.e., payments petitioner made on the deficiency
prior to her request for sec. 6015(f) equitable relief relating
thereto would not be refundable).
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