Patricia H. Devlin - Page 5

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          v. Commissioner, 129 T.C. 1, 4 n.4 (2007); Washington v.                    
          Commissioner, 120 T.C. 137, 147 (2003).                                     
               Section 6015(f) provides for equitable relief if, taking               
          into account all of the facts and circumstances, it is                      
          inequitable to hold the requesting spouse liable for any unpaid             
          tax or deficiency.  As directed by section 6015(f), the                     
          Commissioner has prescribed guidelines under which a taxpayer may           
          qualify for equitable relief from liability on a joint return for           
          tax owed on income attributable to the nonrequesting spouse.  See           
          Rev. Proc. 2003-61, 2003-2 C.B. 296.  Rev. Proc. 2003-61, sec.              
          4.02, 2003-2 C.B. at 298, provides in relevant part that relief             
          ordinarily will be granted to a requesting spouse with regard to            
          underpayments of tax attributable to the nonrequesting spouse if            
          three criteria are met.  The first criterion, that the requesting           
          spouse is no longer married to or is legally separated from the             
          nonrequesting spouse or is not a member of the same household at            
          any time during the 12 months prior to the request for relief, is           
          satisfied in this case.                                                     
               The second criterion, that, at the time the joint return was           
          signed, the requesting spouse had no knowledge or reason to know            
          that the tax would not be paid and that it was reasonable to                
          believe that the nonrequesting spouse would pay the liability, is           
          not satisfied in this case.  Petitioner and Collins were having             
          both personal and business financial difficulties throughout                

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