- 10 -
Marital status; (2) economic hardship; (3) no knowledge or reason
to know that the nonrequesting spouse would not pay the income
tax liability; (4) whether the nonrequesting spouse had a legal
obligation to pay the liability; (5) whether the requesting
spouse benefited significantly from the unpaid income tax
liability; and (6) whether the requesting spouse made a good
faith attempt to comply with the tax laws in subsequent years.
These factors are considered in determining whether there was an
abuse of discretion by respondent in denying equitable relief
under section 6015(f).
For a taxpayer who seeks relief from an underpayment of tax,
as in this case, Rev. Proc. 2003-61, sec. 4.03(2)(a)(iii)(A),
addresses whether the requesting spouse knew or had reason to
know that the underpayment would not be paid at the time the
return was filed. Petitioner contends she was unaware of a tax
liability for 1998. However, as noted earlier, petitioner and
Mr. Christman filed a joint return for 1998 on July 7, 2000, on
which there was a tax liability of $7,744 and on which a payment
of $744 was submitted with the return. Petitioner, therefore,
knew that there was an underpayment of tax for 1998 and knew that
such underpayment was not paid at the time the return was filed.
With respect to the additions to tax for 1998 and 1999,
petitioner must show that it was reasonable for her to believe
that Mr. Christman would pay the additions to tax at the time she
signed the returns. See, e.g., Knorr v. Commissioner, T.C. Memo.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: November 10, 2007