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            
                                             for petitioner.                          












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