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her 2004 tax liability since the IRS assessed the penalty,
petitioner paid the penalty, and the penalty was not otherwise
abated by the IRS. See, e.g., sec. 301.6651-1(c), Proced. &
Admin. Regs. (discussing a reasonable cause defense that the
taxpayer may raise with the IRS if he establishes, among other
things, that he was unable to pay the liability or would suffer
undue hardship if he paid the liability on the due date).
Finally, despite the fact that the IRS abated the interest and
penalties with respect to the 2003 return, the Court does not
find credible petitioner’s testimony as to her excuse for not
filing timely, given that the cover letter addressed to
petitioner from the C.P.A. states:
Enclosed is your 2003 Federal Individual Income Tax
Return. * * * There is a balance due of $2,778. Make
your check payable to the ‘United States Treasury’ and
mail your Federal return with Form 1040-V payment
voucher on or before October 15, 2004 * * *.
Therefore, the Court finds that the compliance factor weighs
against relief. See Fox v. Commissioner, T.C. Memo. 2006-22
(stating noncompliance weighs against relief under Rev. Proc.
2003-61); Beatty v. Commissioner, T.C. Memo. 2007-167 (stating
that one delinquently filed return, which showed a refund due,
and the other facts and circumstances were not significant
factors weighing against relief in that case, and the
Commissioner argued that the compliance factor weighed in favor
of relief under Rev. Proc. 2003-61); cf. Butner v. Commissioner,
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