- 8 - which the IRS will ordinarily grant relief under section 6015(f) with respect to an underpayment of a properly reported liability. To qualify for relief under Rev. Proc. 2003-61, sec. 4.02, the requesting spouse must: (1) No longer be married to, be legally separated from, or have not been a member of the same household as the nonrequesting spouse at any time during the 12-month period ending on the date of the request for relief; (2) have had no knowledge or reason to know when she signed the return that the nonrequesting spouse would not pay the tax liability; and (3) suffer economic hardship if relief is not granted. See Rev. Proc. 2003-61, sec. 4.02(1), 2003-2 C.B. at 298. Petitioner was divorced from Mr. Nakasu when she requested innocent spouse relief. Condition 1 is satisfied. With respect to whether petitioner had knowledge or reason to know when she signed the return that Mr. Nakasu would not pay the tax liability, petitioner agrees that at the time she signed each return she knew that payments for tax shown on each return would not be made. Accordingly, petitioner does not qualify for relief under Rev. Proc. 2003-61, sec. 4.02, and the Court need not discuss the third element. Rev. Proc. 2003-61, Sec. 4.03: Other Factors Where the requesting spouse fails to qualify for relief under Rev. Proc. 2003-61, sec. 4.02, the IRS may nevertheless grant relief under Rev. Proc. 2003-61, sec. 4.03. Rev. Proc.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 NextLast modified: March 27, 2008