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8. Liability attribution
Under Rev. Proc. 2000-15, sec. 4.03(1)(f) and (2)(a), 2000-1
C.B. 447, 449, the IRS considered whether the outstanding
liability was attributable to the requesting spouse or the
nonrequesting spouse when determining whether equitable relief
was appropriate. Although Rev. Proc. 2003-61, sec. 4.03, does
not list liability attribution as one of the factors for
consideration, we note that the list in Rev. Proc. 2003-61, sec.
4.03, is not exclusive.
The entire outstanding liability is attributable to self-
employment taxes arising from Mr. Parker’s self-employment income
from two sole proprietorships. None of the self-employment
income or self-employment taxes arising therefrom is attributable
to petitioner. This factor weighs in favor of granting relief.
D. Conclusion
At trial, petitioner’s testimony was consistent with her
assertions in the Form 8857, her responses to information
requests from respondent, and the statements outlined in the
revenue agent’s workpapers. Respondent has not challenged
petitioner’s truthfulness on these matters. Although we find
that petitioner had reason to know that the tax liability would
not likely be paid in light of Mr. Parker’s intent to file a
petition in bankruptcy, we nevertheless conclude that respondent
abused his discretion in determining that petitioner was not
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