Cheryl McKnight - Page 20

                                       - 20 -                                         
          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.                    
               Respondent determined, and we agree, that it appears that              
          petitioner will not suffer economic hardship if relief is not               

Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  Next

Last modified: May 25, 2011