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Sec. 6015(f) Relief
As explained, whatever interest in MGI petitioner may have
held was only as a nominee, and none of the MGI income should be
attributed to her. Rev. Proc. 2003-61, sec. 4.01(7)(b).
Petitioner is potentially eligible for section 6015(f) equitable
relief from the entire $17,516 underpayment.
As respondent acknowledges, most of the equitable factors
set forth in Rev. Proc. 2003-61, supra, support the relief
petitioner requests under section 6015(f): (1) Petitioner and
John are divorced; (2) under the divorce decree, John had a legal
obligation to pay the 1995 unpaid Federal income taxes and any
penalties and interest relating thereto; (3) petitioner did not
receive a significant benefit (beyond support) from the unpaid
underpayment; and (4) petitioner has complied with the income tax
laws in the years following 1995.
Three remaining factors require further analysis.
(1) Economic Hardship
A requesting spouse will be regarded as suffering economic
hardship if the requesting spouse, if not granted relief, will be
unable to pay his or her reasonable basic living expenses. Rev.
Proc. 2003-61, sec. 4.02(1)(c), 2003-2 C.B. at 298, sec.
4.03(2)(a)(ii).
Respondent determined, and we agree, that it appears that
petitioner will not suffer economic hardship if relief is not
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