- 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
Last modified: May 25, 2011