- 5 -
and Social Security income of Dr. Banderas totaling $84,089 and
petitioner’s wages of $37,068. After subtraction of $10,063 in
Federal income tax withheld, $853 of which was attributed to
petitioner’s wages, the return reported a balance due of $10,262.
No payment was submitted with the return.
On or about June 12, 2003, the Internal Revenue Service
(IRS) received from petitioner a signed Form 8857, Request for
Innocent Spouse Relief. Petitioner indicated on the Form 8857
that she was requesting equitable relief under section 6015(f)
for underpayments of tax for 1997 and 1999,4 and she attached the
following explanatory statement:
Most of my married life - which was my entire
adult life until my husband passed away - I was a
“stay-at-home” wife and mother, with my husband working
hard to support us and to build what we thought was our
retirement plan.
In 1997, as a result of an unjust judgement
against my husband, an illegal hold was placed on our
joint checking account, which caused our check to the
IRS for the balance of our 1996 taxes to bounce due to
“unavailable funds”. Shortly afterwards, my husband
was advised to file for bankruptcy.
Before filing, we were reassured that the IRS
would be the #1 creditor, and that all taxes would be
paid before any other creditors. Had we not been
assured of this, my husband would have gotten a
distribution from the pension plan to pay any taxes
before filing.
During the bankruptcy proceedings, we realized
that our retirement plan was, in reality, his
retirement plan - and it was taken away. When my
4 Petitioner also listed 1996 as a year for which she was
requesting relief, but that year was not further considered after
the IRS explained that no balance was due.
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