Clarissa Ybarra - Page 10

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               Whether it would be inequitable to hold a spouse liable for            
          a tax deficiency is determined by taking into account all the               
          facts and circumstances.  Id.7  The two most often cited factors            
          to be considered are:  (1) Whether there has been a significant             
          benefit to the spouse claiming relief, and (2) whether the                  
          failure to report the correct tax liability on the joint return             
          results from concealment, overreaching, or any other wrongdoing             
          on the part of the other spouse.  Alt v. Commissioner, 119 T.C.             
          306, 314 (2002), affd. 101 Fed. Appx. 34 (6th Cir. 2004).  We               
          also consider factors used in determining “inequity” in the                 
          context of section 6015(f).8  Where a refund was received, the              
          determinative fact is who benefited from it.  Juell v.                      
          Commissioner, T.C. Memo. 2007-219.                                          
               The record does not reveal how petitioner and Mr. Olivas               
          shared the loan proceeds from H&R Block (the amount of which was            
          based on the expected tax refund).  Even if a portion of the                
          rapid refund loan was allocated to petitioner, we are satisfied             

               7“The requirement in section 6015(b)(1)(D) * * * is                    
          virtually identical to the same requirement of former section               
          6013(e)(1)(D); therefore cases interpreting former section                  
          6013(e) remain instructive to our analysis.”  Doyel v.                      
          Commissioner, T.C. Memo. 2004-35.                                           
               8Rev. Proc. 2003-61, sec. 4.03, 2003-2 C.B. 296, 298 lists             
          nonexclusive factors the Commissioner considers in determining              
          whether it is inequitable to hold the electing spouse liable for            
          all or part of a deficiency under sec. 6015(f).                             

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