- 5 - Velez. The $96 of Federal withholding tax reported on the 1997 income tax return was tax withheld from petitioner’s wages. Petitioner was aware when she signed the return for 1997 that it would be filed without remittance. Dr. Velez told petitioner that he did not have the money to pay the tax. Dr. Velez never received a liver transplant, and his health continued to decline. He died on November 19, 2000. As a result of the two bankruptcies in 1995 and 1997 and his inability to earn income after 1997, Dr. Velez had no assets at the time of his death. Petitioner filed a Request for Innocent Spouse Relief (And Separation of Liability and Equitable Relief), including a “Statement of Facts”, and Form 12510, Questionnaire for Requesting Spouse. The parties agree that: (a) Petitioner did not receive significant benefit, beyond normal support, from the unpaid income tax liabilities for 1996 and 1997; (b) Dr. Velez did not abuse petitioner; (c) petitioner is not in poor mental or physical health; (d) petitioner has made a good faith effort to comply and has complied with the income tax laws in the taxable years following 1997; (e) and petitioner would not suffer “economic hardship”, as defined in section 301.6343-1(b)(4), Proced. & Admin. Regs., if she were required to pay the outstanding joint income tax liabilities for 1996 and 1997.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: March 27, 2008