Phyllis J. Merendino - Page 10

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          II. Section 6015(f)                                                         
               We note this case involves an unpaid tax liability for the             
          year in issue.  Because this case does not involve a deficiency             
          or understatement, petitioner does not qualify for relief under             
          section 6015(b) or (c).  See sec. 6015(b)(1) and (c)(1);                    
          Washington v. Commissioner, 120 T.C. 137, 146-147 (2003).                   
          Therefore, our review is limited to section 6015(f), which                  
          permits in certain circumstances relief from joint and several              
          liability for unpaid taxes.  See Ewing v. Commissioner, 118 T.C.            
          494, 497 (2002).  Section 6015(f) grants the Commissioner                   
          discretion to grant equitable relief from tax liability to a                
          spouse if, taking into account all the facts and circumstances,             
          it is inequitable to hold the spouse liable for any unpaid tax or           
          any deficiency (or any portion of either), and relief is not                
          available under section 6015(b) or (c).  In order to prevail, the           
          taxpayer must demonstrate that the Commissioner abused his                  
          discretion by acting arbitrarily, capriciously, clearly                     
          unlawfully, or without sound basis in fact or law.  See Jonson v.           
          Commissioner, 118 T.C. 106, 125 (2002), affd. 353 F.3d 1181 (10th           
          Cir. 2003); Butler v. Commissioner, 114 T.C. 276, 289-290 (2000).           
          Here, petitioner bears the burden of proving that respondent                
          abused his discretion in denying her equitable relief under                 
          section 6015(f).  See Rule 142(a); Alt v. Commissioner, 119 T.C.            
          306, 311 (2002), affd. 101 Fed. Appx. 34 (6th Cir. 2004);                   
          Ogonoski v. Commissioner, T.C. Memo. 2004-52.  We have                      

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