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While we are sympathetic to petitioner’s situation with her
former husband, we cannot find that respondent abused his
discretion in determining that petitioner had reason to know at
the time she signed the return that the tax liability would not
be paid. Petitioner has not established that it was reasonable
for her to believe Mr. Parker would pay the liability. We
conclude, therefore, that respondent did not abuse his discretion
in determining that petitioner did not satisfy the knowledge or
reason to know element of Rev. Proc. 2003-61, sec. 4.02, and thus
does not qualify for equitable relief under that section of the
revenue procedure.
C. Rev. Proc. 2003-61, Sec. 4.03
Where the requesting spouse fails to qualify for relief
under Rev. Proc. 2003-61, sec. 4.02, the Commissioner may
nonetheless grant relief under Rev. Proc. 2003-61, sec. 4.03,
2003-2 C.B. at 298-299. Rev. Proc. 2003-61, sec. 4.03, provides
that, where the seven threshold conditions have been satisfied
and the requesting spouse does not qualify for relief under Rev.
Proc. 2003-61, sec. 4.02, equitable relief may be granted under
section 6015(f) if, taking into account all facts and
circumstances, it is inequitable to hold the requesting spouse
liable. Rev. Proc. 2003-61, sec. 4.03, contains a list of
factors that the Commissioner will take into account in
determining, on the facts and circumstances, whether to grant
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