- 2 - We review respondent’s determination for abuse of discretion, and for the reasons explained herein we find respondent’s determination was in error. FINDINGS OF FACT Petitioner resided in Albermarle, North Carolina, when her petition in this case was filed. Petitioner was married to Daniel Brown during the years in question. They separated in July 2000 and were divorced sometime in 2002. During the years in question, petitioner assisted Mr. Brown in his heating and air-conditioning business. They did not pay the income tax liabilities of $2,597 and $416 reflected on their 1994 and 1999 returns, respectively. Respondent made an assessment of $2,425.85 to correct a mathematical error on the 1995 joint return. This amount was also unpaid. The amounts of tax remaining unpaid are $1,785.30, $2,425.85, and $416, respectively. Petitioner mailed a Form 8857, Request for Innocent Spouse Relief, in December 2002. In August 2003, respondent made an initial determination to deny relief on the basis that petitioner had knowledge of the taxes due at the time she signed the joint returns, that there was no spousal abuse, and that petitioner had failed to establish economic hardship. Petitioner appealed this denial to no avail, and respondent issued a notice ofPage: Previous 1 2 3 4 5 6 7 8 9 10 NextLast modified: November 10, 2007