- 8 - does not dispute that petitioner has satisfied the seven threshold conditions.9 Where, as here, the requesting spouse satisfies the threshold conditions, Rev. Proc. 2000-15, sec. 4.02, 2000-1 C.B. at 448, lists factors to be considered in determining whether to grant equitable relief for underpayments of tax. Equitable relief under section 6015(f) for an underpayment of tax on a joint return will ordinarily be granted by the Commissioner if all three of the following criteria are met: (1) The requesting spouse is divorced, is legally separated, or has been physically separated for 1 year from the nonrequesting spouse at the time relief is requested; (2) the requesting spouse did not know or have reason to know that the income tax liability would not be paid at the time the joint return was signed; and (3) the requesting spouse will, absent relief, suffer economic hardship. Although he was divorced from his wife at the time relief was requested, petitioner was aware that the income tax liability for 2001 would not be paid at the time he signed the return. As explained by him, the recent divorce settlement and Ms. Peet’s 9Although an underpayment of tax may be attributable to income earned by the requesting spouse, Rev. Proc. 2003-61, sec. 4.01(7)(c), 2003-2 C.B. at 297, allows equitable relief to be considered in cases, such as this one, where funds intended for the payment of tax were misappropriated by the nonrequesting spouse for the nonrequesting spouse’s benefit. Because the guidelines found in Rev. Proc. 2000-15, supra, apply in the instant case, however, this provision has no bearing on the outcome of this case.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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