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spouse who failed to report the income shall be solely
responsible for any deficiency, including taxes, penalties and
interest.” Petitioner testified that he used the software
program to complete and file their tax return and that he
misunderstood that the pension was, in fact, taxable. Therefore,
while the agreement holds petitioner and intervenor liable for
the deficiencies that arise from their own income, petitioner was
ultimately aware of the pension at the time he filed the return.
We find this fact ultimately dispositive.
As to the fifth factor, petitioner received a substantial
benefit in that the overpayment due on the joint return was
applied to joint tax liabilities petitioner owed for taxable
years 1997 and 1998. In addition, after the overpayment was
applied to the outstanding liabilities, petitioner received a
refund of more than $1,200.
Petitioner’s failure to satisfy all but one3 of the factors
in Rev. Proc. 2003-61, sec. 4.03 is determinative. On these
facts and circumstances, the Court holds that there was no abuse
of discretion by respondent in denying relief to petitioner under
section 6015(f). The Court, therefore, sustains that denial.
Because we have already sustained respondent, we need not
3 With reference to the sixth factor, we note that at trial,
respondent asserted that petitioner had not timely filed income
tax returns for taxable years 2000 and 2001. Petitioner did not
rebut this assertion.
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