Clarissa Ybarra - Page 11

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          that petitioner did not significantly benefit from the tax                  
               Petitioner’s monthly income in 2004 consisted of $1,600 of             
          her own wages and $250 of Government assistance.  Petitioner did            
          not receive any child support, and Mr. Olivas did not contribute            
          to the support of the household.  Petitioner paid all bills for             
          the household, which consisted of herself, her three children,              
          and Mr. Olivas, from her separate bank account.  There is no                
          evidence that petitioner acquired assets or incurred unusual or             
          extravagant expenses.  Petitioner did not have any health or life           
          insurance.  We are convinced that any portion of the rapid refund           
          loan allocated to petitioner was used to pay for essential living           
          expenses and the cost of supporting her household at a very                 
          modest level.9  Indeed, respondent conceded in his pretrial                 
          memorandum that “respondent does not believe the small amount of            
          money involved provided any significant benefit beyond normal               
               Petitioner learned of the retirement distributions only when           
          she was notified by third parties (the Arizona State Retirement             

               9Cf. Alt v. Commissioner, 119 T.C. 306, 314 (2002), affd.              
          101 Fed. Appx. 34 (6th Cir. 2004), in which the spouse requesting           
          innocent spouse relief and her husband purchased a home for each            
          of their four children, purchased a 600-acre riverfront property            
          upon which a Georgian mansion was being built, purchased a                  
          business for their son, fully paid for their children to attend             
          undergraduate and graduate schools, and indulged the requesting             
          spouse’s interest in antiques.                                              

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