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Standard for Review
The Court reviews the IRS’s denial of innocent spouse relief
under section 6015(f) for abuse of discretion. See Butler v.
Commissioner, supra at 292. Under the abuse of discretion
standard, the Court must determine whether the IRS exercised its
discretion arbitrarily, capriciously, or without sound basis in
fact when it denied the requested relief. Id. The Court’s
review is limited, and the Court cannot substitute its judgment
for that of the IRS and determine whether in the Court’s opinion
it would have granted relief. See Patton v. Commissioner, 116
T.C. 206 (2001); Collectors Training Inst., Inc. v. United
States, 96 AFTR 2d 2005-6522, at 2005-6526, 2005-2 USTC par.
50,626, at 89,727 (N.D. Ill. 2005) (stating that an abuse of
discretion “‘means something more than’ the court’s belief that
it would ‘have acted differently if placed in the circumstances
confronting the’” Appeals officer (quoting Johnson v. J.B. Hunt
Transp., Inc., 280 F.3d 1125, 1131 (7th Cir. 2002))).
Guide for Exercise of Discretion
To guide IRS employees in exercising their discretion, the
Commissioner has issued revenue procedures that list the factors
they should consider; the Court also uses these factors when
reviewing the IRS’s denial of relief. See Washington v.
Commissioner, supra at 147-152; Rev. Proc. 2003-61, 2003-2 C.B.
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Last modified: March 27, 2008