Clarissa Ybarra - Page 12
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System and the Social Security Administration) that the
distributions had been made. It is evident that Mr. Olivas
concealed the distributions from petitioner, which was not
difficult for him to do, given their financial arrangements (no
joint bank accounts and household bills paid only from
petitioner’s account). It was this concealment that led to the
failure to report the correct tax liability.
We have considered other factors that are relevant to
whether it would be inequitable to hold petitioner liable.
Petitioner’s level of earnings and the fact that petitioner
receives public assistance lead to the conclusion that petitioner
already experiences economic hardship, in that she is unable to
pay her basic reasonable living expenses. See sec. 301.6343-
1(b)(4), Proced. & Admin. Regs. This hardship will only be
compounded if relief from liability is not granted. To conclude,
respondent abused his discretion in denying petitioner innocent
spouse relief under section 6015 for tax year 2004.
To reflect the foregoing,
Decision will be entered
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Last modified: March 27, 2008