Debra Anne Banderas - Page 12

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               Relief under section 6015(b) or (c) is premised on the                 
          existence of an understatement or deficiency.  Because the                  
          liabilities at issue in this case derive from unpaid taxes                  
          reported on the 1997 and 1999 returns, petitioner is not eligible           
          for relief under subsection (b) or (c).  Accordingly, there is no           
          dispute that petitioner satisfies the criterion for equitable               
          relief codified in section 6015(f)(2).  The instant dispute thus            
          centers on the facts and circumstances inquiry of section                   
               As directed by section 6015(f), the Secretary has                      
          promulgated guidance to structure the relevant facts and                    
          circumstances analysis, the applicable version of which is set              
          forth in Rev. Proc. 2003-61, 2003-2 C.B. 296.   Rev. Proc. 2003-            
          61, sec. 4.01, 2003-2 C.B. at 297, first lists seven threshold              
          conditions that must be met before the IRS will consider a                  
          request for relief under section 6015(f):  (1) The requesting               
          spouse filed a joint return for the year for which relief is                
          sought; (2) relief is not available under section 6015(b) or (c);           
          (3) the application for relief is made no later than 2 years                
          after the date of the IRS’s first collection activity; (4) no               
          assets were transferred between the spouses as part of a                    
          fraudulent scheme; (5) the nonrequesting spouse did not transfer            
          disqualified assets to the requesting spouse; (6) the requesting            
          spouse did not file or fail to file the return with fraudulent              

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