David Bruce Billings - Page 9




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          Rev. Proc. 2000-15, sec. 4.02(1)(a), 2000-1 C.B. at 448, and                
          David and Rosalee have remained married throughout her ordeal.              
               This leaves an eight-factor balancing test to decide whether           
          relief would be "equitable."  Id., sec. 4.03.  Those factors, and           
          the circumstances under which they are to weigh for or against              
          relief or be treated as neutral, are easily summarized in a                 
          chart.  Here we list those factors about which the parties agree            
          in italics.                                                                 

           Weighs for Relief          Neutral            Weighs against               
                                                             Relief                   
          No knowledge of                             Knowledge                       
          the underpayment                                                            
          or item giving                                                              
          rise to the                                                                 
          deficiency                                                                  
          Economic hardship                           No economic hardship            
          No significant                              Significant benefit             
          benefit3                                                                    
                               Later compliance with  No later compliance             
                               Federal tax laws       with Federal tax                
                                                      laws                            
          Liability                                   Liability                       
          attributable to                             attributable to                 
          nonrequesting                               petitioner                      
          spouse                                                                      



               3  Rev. Proc. 2000-15, sec. 4.03, 2000-1 C.B. at 448, does             
          not state that the absence of a significant benefit will weigh in           
          a petitioner’s favor, but only that a significant benefit will              
          weigh against relief.  Nonetheless, we decided in Ewing v.                  
          Commissioner, 122 T.C. 32, 45 (2004), vacated 439 F.2d 1009 (9th            
          Cir. 2006) (and other cases cited), that the absence of a                   
          significant benefit should be a positive factor for petitioners.            





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