# PURSUANT TO INTERNAL REVENUE CODE SECTION 7463(b),THIS OPINION MAY NOT BE TREATED AS PRECEDENT FOR ANY OTHER CASE.T.C. Sum m ary Opi ni on 20 14 -1 5

UNITED STAT ES TAX COURT

JULIE G. HOWERTER, f.k.a. J ULIE G. G ENTRY, Peti ti on er, AND

RAYMOND G. GENT RY, In te rv en orv. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 27 07 9- 12 S. Fi le d F eb ru ary 19 , 20 14
.
Ju li e G. Howert er, p ro se. Raym on d G. Gen try, pro se. Jo hn S. Hit t an d M athe w M. Jo hn so n, fo r res po nd en t.

SUMM ARY OPINION KERRIGAN, Ju dg e: Thi s ca se was h eardpu rs ua ntto sec ti on 74 63 of t he In te rn al Rev enue Co de in effe ctwhen th e p et it io n was fil ed . Purs ua ntto sec ti on 74 63 (b ), th e d eci si on to be en te redis no t re vi ewab le by any ot he r co urt, an d t hi s- 2 -

op in io n s ha ll no t b e tr eat edas p rece de ntforan y ot he r cas e. Unl es s o th erwi se in di cat ed , all sec ti on refe ren ces are t o t he Int ern al Rev enue Co de in effe ctat a ll rel ev an t t im es , andall Ru le refe ren ces are t o t he Tax C ou rt Rul es of P ract ic e an d Pro cedur e. Thi s p ro ceed in g was co m m en cedun de r se ct io n 6 01 5 fo r rev ie w of
res po nd en t’s d et erm in at io n t ha t p et it io ne r is no t en ti tl edto rel ie f fro m joi ntan d
se ve ral li ab il it y

for20 07 with re sp ectto th e Fed eral in co m e ta x re tu rnsh e fi le d wit h i nt erv en or , herform er s po us e. W e m us t co ns id er wh ethe r pe ti ti on er i s en ti tl edto rel ie f un de r se ct io n 6 01 5( b) , (c), o r (f). Bac kg ro un d Pet it io ne r res id edin Ill in oi s wh ensh e fi le d t he pe ti ti on . Pet it io ne r an d i nt erv en orm arri edin 19 92 , sep arat edin Jan ua ry 20 08 , and di vo rcedon May 11, 2 01 0. Pe ti ti on er an d i nt erv en orres id edto ge th er u nt il th ei r se pa rat io n. In20 06 in te rv en orwork edas aterm in al m an ag er i n t he op erat io ns di vi si on of Tran sp ort Lea si ng Co nt ract , Inc ., a tru ck in g c om pa ny in Il li no is . Also in20 06 And y ’s Exp res s C o. (An dy’ s) hi redin te rv en orto workin bo th th ei r op erat io ns an d
sa le s d iv is io ns . Int erv en orrece iv edwage s an d c omm is si on s b as edon hi s s al es . Fo r 20 06 in te rv en orrece iv edtwo Fo rm s W-2, Wage an d Tax Sta te m en t, o ne for- 3 -

wag es rece iv edfro m

Andy ’s andth e o th er fo r wag es rece iv edfro m Tran sp ort Leas in g C on tra ct , Inc . In 2 00 7 i nt erv en orwork edso le ly for An dy’ s. Fo r 20 07 in te rv en orrece iv edbo tha Fo rm W -2 forwage s an d aFo rm 10 99 -MI SC, Mi sc el lane ou s In co m e, fo r no ne m pl oyee co m

pe ns at io n (i .e., comm is si on s)
rece iv edfro m

Andy ’s. Thro ug ho uthe r m arri ag e to in te rv en orpe ti ti on er p rep aredth ei r joi nt Fed eral in co m e ta x re tu rn s. In te rv en orwou ldpro vi de he r wit h h is th ird -p arty rep orti ng in fo rm at io n a ndot he r reque st edin fo rm at io n. Pet it io ne r an d i nt erv en or ’s 20 07 joi ntFed eral tax return s ho weda to ta l t ax of $2 ,80 6 a ndFed eral in co m e ta x wi th ho ld in g o f $8 ,02 5, re su lt in g i n arefundof $5 ,21 9. On Fe brua ry

17 , 20 09 , res po nd en t i ss ue d aNot ic e CP2 00 0 t o p et it io ne r an d in te rv en orst at in g t ha t the y fai le d t o re po rt t he fol lo win g: (1) $1 2 i n i nt eres t in co m e fro m

Co un try Life In su ran ce Co . rep orte d o n aFo rm 10 99 -INT, Int eres t In co m e; (2) $9 ,75 3 i n n on em pl oyee co m

pe ns at io n fr om

Andy ’s rep orte d o n a Fo rm 10 99 -MI SC; an d (3 ) a $ 37 1 S ta te in co m e ta x re fu ndfro m th e St at e o f- 4 -

Ill in oi s Dep artm en t o f Rev enue rep orte d o n aFo rm 10 99 -G, Cert ai n Go ve rn m en t Paym en ts . 1 On J un e 2 2, 2 00 9, re sp on de ntis su edpe ti ti on er an d i nt erv en ora no ti ce o f de fic ie nc y

fortax y ear 2 00 7 d et erm in in g ade fic ie nc y of $ 2,9 01 ari si ng fro m

th e un rep orte d i nc om e li st edin th e Not ic e CP2 00 0. Nei th er p et it io ne r no r in te rv en or fil eda pe ti ti on with t hi s C ou rt i n re sp on se to th e n ot ic e o f de fic ie nc y . On J anua ry

27 , 20 10 , res po nd en t re cei ve d aFo rm 88 57 , Reque stfor In no cen t Sp ou se Rel ie f, fo r ta x year 20 07 fro m pe ti ti on er. Inhe r Fo rm

88 57 pe ti ti on er as se rte d t ha t s he was n otli ab le forth e u nr ep orte d c omm is si onin co m e of $9 ,75 3 b ecau se sh e was ne ve r aware of i nt erv en or ’s recei ptof t he co m m is si on in co m e an d i nt erv en ordi d n otpro vi de he r wit h aFo rm 10 99 -MI SC i nd ic at in g t ha t he ha d re cei ve d c omm is si on in co m e fro m Andy ’s. On M ay 18 , 20 10 , res po nd en t p ro po se d p rel im in ari ly to g ran t p et it io ne r rel ie f fro m

joi ntan d s ev eral li ab il it y , pu rs ua ntto sec ti on 60 15 (c), fo r th e p orti on of th e u nd ers ta te m en t at tri bu tabl e to in te rv en or ’s no ne m pl oyee co m

pe ns at io n. In te rv en or , ho wev er, ap pe al edth e p rel im in ary de te rm in at io n o n J un e 8 , 20 10
. Am on g the m at eri al s t ha t i nt erv en orsen t t o re sp on de ntto ch al le ng e res po nd en t’s
Pet it io ne r do es no t co nt es t h er joi ntli ab il it y forth e in te res t i nc om e o r th e 1 St at e in co m e ta x re fund
.- 5 -

pr op os edde ci si on was aco py of a s eri es of e m ai ls whi ch he co nt en de d p et it io ne r ha d s en t t o h im . The fi rs t em ai l, d at edAug us t 2 7, 2 00 7, was en ti tl ed

“ Co m m is si on s” an d i nc lu de d adi sc us si on of i nt erv en or ’s “ co m m is si on ch eck s” (in te rv en or ’s Aug us t 2 00 7 e m ai l). A s eco ndem ai l fr om pe ti ti on er t o i nt erv en or da te d Dec em

be r 19 , 20 07 (in te rv en or ’s Decem be r 20 07 em ai l), s ta te s: “ [Y]ou
ne edto pu ll to ge th er al l the in fo rm at io n o n wh atco m m is si on y ouha ve earn edfor th is cal en da r y ear.” Inres po ns e to in te rv en or ’s app eal pe ti ti on er s en t re sp on de nta le tt er o n Octo be r 13 , 20 10 , whi chex pl ai ns he r co nc ern s ab ou t the em ai ls in te rv en or subm it te d. Th e le tt er i nc lu de d aco py of wh atsh e co nt en de d was th e actua l em ai l th atsh e se ntto in te rv en oron Aug us t 2 7, 2 00 7 (p et it io ne r’s Aug us t 2 00 7 e m ai l). Pet it io ne r’s co py of th e Aug us t 2 00 7 e m ai l i s n otid en ti cal to in te rv en or ’s cop y of th e Aug us t 2 00 7 e m ai l. Pet it io ne r’s Aug us t 2 00 7 e m ai l was en ti tl ed“ IRS W it hh ol di ng s” an d m ad e n o re fere nc e to an y co m m is si onin co m e in te rv en or earn ed
. On No ve m

be r 10 , 20 10 , res po nd en t i ss ue d p et it io ne r a n ot ic e o f de te rm in at io n d en y in g h er re qu es t fo r in no cen t s po us e rel ie f un de r se ct io n 60 15 (b ), (c), o r (f).- 6 -

At tria l p et it io ne r ad m it te d t ha t s he was a ware t ha t i nt erv en orha d re cei ve d
co m m is si on s fr om

an ot he r co m

pa ny bu t co nt en de d t ha t s he was u na ware o f th e co m m is si on s i nt erv en orearn edfro m Andy ’s in20 07 . Peti ti on er t es ti fie d t ha t in te rv en orpro vi de d h er wi thon ly his Fo rm W -2 fro m

Andy ’s. Int erv en ortes ti fie d th athe rece iv edth e Fo rm W -2 an d t he Fo rm

10 99 -MI SC atth e sa m e ti m e an d pr ov id edbo th to pe ti ti on er atth e sa m e ti m e. Pet it io ne r co nt en ds th atin te rv en or as ke d t ha t the y

fil e th ei r ta x re turnearl y so he co ul d u se hi s s ha re o f th e ref un d fo r a d ownpa ym en t o n a n apa rtment, b utsh e ad m it te d t ha t s he als o wan te d t o fi le earl y be cau se sh e p lann edto us e h er s ha re o f an y refu ndrece iv edfor20 07 to pa y of f so m e it em s. Pet it io ne r rec ei ve s l im it edch il d s up po rt a ndm us t ca re fo r he r th ree c hi ld ren by hers el f. Pet it io ne r returne d t o wo rkrece nt ly after b ei ng lai d o ff by her em pl oyer. Befo re an d s in ce 2 00 7, p et it io ne r ha s fi le d a ll requi redFo rm s 1 04 0, U.S. In di vi du al Inc om e Tax Return, t im el y an d re po rte d a ccurat el y

all in co m e earne d. Sh e d oe s n othave anou ts ta nd in g b al an ce due to res po nd en t. Thi s i s h er fi rs t ca se be fo re thi s C ou rt. Dis cu ss io n Gen eral ly, m arri edtax pa y ers m ay ele ctto fil e a joi ntFed eral in co m e ta x return. Se c. 60 13 (a). Aft er m ak in g t hi s el ect io n, ea chsp ou se is joi nt ly and- 7 -

se ve ral ly liab le forth e en ti re t ax du e fo r th attax ab le y ear. Se c. 60 13 (d )(3 ). A reque st in g s po us e m ay

see k re li ef fro m

joi ntan d s ev eral li ab il it y un de r se ct io n 60 15 (b ) or , if el ig ib le , m ay all oc at e li ab il it y

un de r se ct io n 6 01 5( c). Sec . 60 15 (a). If a re qu es ti ng sp ou se is no t el ig ib le forrel ie f un de r se ct io n 6 01 5( b) or ( c), a reque st in g s po us e m ay

be eli gi bl e fo r equi tabl e rel ie f un de r se ct io n 6 01 5( f). Ols on v. Co m

m is si on er, T.C. Mem o. 2 00 9- 29 4, s li p o p. at10 -1 1. I. Sect io n 6 01 5( b) Sect io n 6 01 5( b) (1 ) au th or iz es th e Sec ret ary to gra ntrel ie f if th e ta xp ay er sa ti sf ie s t he requi rem en ts of s ub pa rag rap hs (A) th ro ug h (E) : SEC. 6 01 5( b) . Proc edur es Fo r Rel ie f Fro m Liab il it y App li cab le to All Jo in t Fi le rs .--

(1 ) Inge ne ral .--Un de r pr oc edur es pre sc rib edby the Secr et ary, if– (A) a joi ntreturn h as be enm ad e fo r a ta xabl e y ear; (B) o n s uc h re turnth ere i s an un de rs ta te m en t o f ta x a tt rib ut ab le to erro ne ou s i te m s o f 1 i nd iv idua l fi li ng th e joi ntreturn; (C) t he ot he r in di vi du al fil in g t he joi nt return e st ab li sh es th atin si gn in g t he return h e o r sh e d id no t kno w, andha d n o re as on to kn ow, tha t the re was su ch un de rs ta te m en t;- 8 - (D) ta ki ng in to acco un t al l the fact s an d ci rcu m st an ces , itis in equi tabl e to ho ldth e o th er in di vi du al li ab le forth e d efi ci en cy in tax forsu ch ta xabl e y ear a tt rib ut ab le to su chun de rs ta te m en t; an d (E) th e o th er i nd iv idua l el ect s (i n s uc h fo rm as th e Sec ret ary m ay

pre sc rib e) the be ne fit s o f th is subs ect io n n otlat er tha n t he da te whi chis 2 years a fte r th e d at e th e Sec ret ary ha s b eg un co ll ect io n a ct iv it ie s wit h re sp ectto th e in di vi du al m ak in g the ele ct io n, th enth e o th er i nd iv idua l s ha ll be rel ie ve d o f li ab il ity for tax (in cl ud in g i nt eres t, p en al ti es , andot he r am ou nt s) forsu ch ta xabl e y ear t o t he ex te ntsu chli ab il it y is attrib ut ab le to su ch un de rs ta te m en t. The requi rem en ts of s ect io n 6 01 5( b) (1 ) are st at edin th e co nju nc ti ve . Halt om v. Co m m is si on er, T.C. Mem o. 2 00 5- 20 9, s li p o p. at9. A reque st in g sp ou se wil l n otqu al ify for re li ef i f he or s he fai ls to m eetan y on e requi rem en t. Altv. Co m

m is si on er, 1 19 T.C. 30 6, 3 13 (20 02 ), aff’d, 1 01 Fed . App x. 3 4 (6 th Cir
. 20 04 ); Ha lt om

v. Co m m is si on er, s li p o p. at9. Res po nd en t co nt en ds th atpe ti ti on er is no t el ig ib le forrel ie f un de r se ct io n 6 01 5( b) be cau se sh e h adactua l kno wled ge of in te rv en or ’s no ne m

pl oyee co m

pe ns at io n. A reque st in g s po us e h as kn owl ed ge or r eas on to kn ow o f an
un de rs ta te m en t i f he or s he actua ll y kn ew of th e u nd ers ta te m en t, o r if a reas on ab le pe rs on in si m il ar ci rcu m st an ces co ul d b e ex pe ct edto kn ow atth e ti m e h e o r sh e si gn edth e return tha t the return c on ta in edanun de rs ta te m en t. Sec . 1.6 01 5- 2( c),- 9 -

In co m e Tax Reg s. A reque st in g s po us e h as kn owl ed ge or r eas on to kn ow o f an
un de rs ta te m en t i f “ a rea so nabl y pru de nttax pa y er u nd er the cir cum st an ces of t he [reque st in g] sp ou se at t he ti m e o f si gn in g t he return c ou ldbe ex pe ct edto kn ow th atth e ta x l iabi li ty stat edwas e rro ne ou s o r th atfurth er i nv es ti ga ti on was warra nt ed .” Ste ve ns v. Co m m is si on er, 8 72 F.2d14 99 , 15 05 (11 th Cir . 19 89 ), aff’g T.C. Me m o. 1 98 8- 63
. All of t he fact s an d c irc um st an ces are co ns id eredinde te rm in in g wh ethe r th e reque st in g s po us e h adreas on to kn ow o f anun de rs ta te m en t. Sec . 1.6 01 5- 2( c), In co m e Tax Reg s. Am on g the fact s an d c irc um st an ces co ns id eredare (1 )

“ whe th er the reque st in g s po us e fai le d t o i nqui re, ator b efo re the ti m e th e return was si gn ed , abo utit em s o n t he return o r omitt edfro m th e return t ha t a r eas on ab le pe rs on wou ldqu es ti on ”, an d (2 ) “ whe th er the erro ne ou s i te m rep res en te d a de pa rtu re fro m

a recu rri ng pa tt ern refl ect edin pri or y ears ’ returns (e.g ., om it te d in co m e fro m

anin ve stm en t re gu la rly repo rte d o n p rio r y ears ’ returns ).” Id
. The rul es pe rta in in g t o areque st in g s po us e’s actua l kno wled ge are s etforth in sec ti on 1.6 01 5- 3( c)(2 ), In co m e Tax Reg s. Th es e ru le s al so ap pl y to reque st s fo r rel ie f un de r se ct io n 6 01 5( c). The Secr et ary ha s b ot h t he bu rd enof p ro du ct io n a nd th e b ur de n o f pe rs ua si on reg ard in g a ctua l kno wled ge an d m us t es tabl is h, b y

a pr ep on de ran ce o f ev id en ce, tha t the reque st in g s po us e h adactua l kno wled ge of t he- 10 -

erro ne ou s i te m . Sec. 1 .60 15 -3 (c)( 2) , Inc om e Tax Reg s. In th e cas e o f omitt ed in co m e, kn owl ed ge of t he it em in cl ud es kn owl ed ge of r ecei ptof t he in co m e. Sec. 1.6 01 5- 3( c)(2 )(i )(A), In co m e Tax Reg s. Thro ug ho uthe r m arri ag e to in te rv en orpe ti ti on er p rep aredth ei r joi nt Fed eral in co m e ta x re tu rn s. In te rv en orwou ldpro vi de he r wit h h is th ird -p arty rep orti ng in fo rm at io n a ndot he r reque st edin fo rm at io n. In te rv en orbe ga n t o wo rk fo r And y ’s in20 06 an d e arn edin co m e fro m Andy ’s in20 06 . Peti ti on er an d in te rv en or ’s 20 06 joi ntFed eral in co m e ta x re tu rnin cl ud edin co m e th atin te rv en or earn edfro m

Andy ’s in20 06 . Peti ti on er t es ti fie d t ha t s he was a ware o f
co m m is si on s tha t i nt erv en orha d re cei ve d fr om ot he r co m

pa ni es . Peti ti on er fu rth er t es ti fie d t ha t s he was aware t ha t i nt erv en orwork edforAndy ’s in20 07
. Pet it io ne r di d n otsh ow t ha t s he in qu ire d a s t o wh ethe r in te rv en or ha d
earn edan y

co m m is si on s o r rec ei ve d a ny Form s 1 09 9 fo r ta x year 20 07 . W e fi nd th ata reas on ab ly pru de nttax pa y er i n p et it io ne r’s po si ti on wou ldha ve in qu ire d a s to whet he r in te rv en orha d e arn edco m m is si on s i n 2 00 7 a s h e h adin pri ory ears . Thu s, we fi ndth atpe ti ti on er h adreas on to kn ow t ha t the tax li ab il ity st at edwas erro ne ou s o r th atfurth er i nv es ti ga ti onwas warran te d. Inad di ti on , in te rv en ortes ti fie d t ha t h e “ ga ve he r [p et it io ne r] the W -2 an d a 10 99 [fro m

Andy ’s] ”. He furth er t es ti fie d tha t p et it io ne r was aware o f th e Fo rm- 11 -

10 99 -MI SC an d t ha t the y sp ok e ab ou t i t an d e xc ha ng edem ai ls co nc ern in g t he Fo rm 10 99 -MI SC an d h is co m m is si on s. Res po nd en t p ro vi de d c op ie s o f bo th in te rv en or ’s Aug us t 2 00 7 e m ai l an d in te rv en or ’s Decem

be r 20 07 em ai l. Res po nd en t co nt en ds th atbo th em ai ls are au th en ti c. The e m ai ls ad dr es se d c omm is si on s p ai d t o i nt erv en orin 20 07
. Pet it io ne r co nt es ts th e au th en ti ci ty of th e em ai ls th atres po nd en t p ro vi de d a nd pr ov id edon ly a cop y

of wh atsh e co nt en ds is th e actua l em ai l s he sen t t o in te rv en oronAug us t 2 7, 2 00 7. Pe ti ti on er’s co py of th e Aug us t 2 00 7 e m ai l d oe s no t i nd ic at e th atsh e was aware o f th e co m m is si on s. Ho wev er, p et it io ne r di d n ot pr ov id e an y

ex pl an at io n fo r th e d iff

eren ce i n t he em ai ls . Add it io na ll y , in te rv en or te st ifi edth atpe ti ti on er’s Au gu st20 07 em ai l i s n ota true an d a ccu rat e co py of th e em ai l tha t h e rec ei ve d fr om he r. W e fi nditm or e li ke ly tha n n otth atpe ti ti on er was aware t ha t i nt erv en or ha d e arn edco m

m is si on s fr om

Andy ’s in20 07 . Res po nd en t s ho wedby a pr ep on de ran ce o f ev id en ce tha t p et it io ne r ha d a ctua l kno wled ge of i nt erv en or ’s
co m m is si on in co m e fo r ta x year 20 07 . Peti ti on er i s n oteli gi bl e fo r rel ie f un de r se ct io n 6 01 5( b)
.- 12 -

II. Sect io n 6 01 5( c) Und er s ect io n 6 01 5( c) i f th e reque st in g s po us e is no lo ng er m arri edto or i s le ga ll y sep arat edfro m

th e sp ou se with wh om

he or s he fil edth e joi ntreturn, h e o r sh e m ay ele ctto li m itli ab il ity

fora de fic ie nc y

as p ro vi de d i n s ect io n 6 01 5( d)
. Sec. 6 01 5( c)(1 ), (3 )(A)(i )(I); DeMat to s v . Comm is si on er, T.C. Mem o. 2 01 0- 11 0. Und er s ect io n 6 01 5( d) (3 )(A) an y it em gi vi ng ris e to a de fic ie nc y ona joi nttax return g en eral ly sha ll be all oc at edto th e in di vi du al fil in g t he return i n t he same m an ne r as itwou ldha ve be enall oc at edif t he in di vi du al ha d fi le d asep arat e return fo r th e ta xabl e y ear. Ho wev er, the ele ct io n i s n otav ai labl e whe re the Secr et ary ha s d em on st rat edth atth e in di vi du al m ak in g t he ele ct io n h adactua l kno wled ge , at th e ti m e h e o r sh e si gn edth e return, o f an y it em gi vi ng ris e to th e d efi ci en cy . Sec. 60 15 (c)( 3) (C); Hop ki ns v. Co m m is si on er, 1 21 T.C. 73 , 86 (20 03 ). The ru le s pe rta in in g t o areque st in g s po us e’s actua l kno wled ge un de r se ct io n 6 01 5( c) ar e th e sa m e ru le s t ha t ap pl y

to sec ti on60 15 (b ). Sec. 1 .60 15 -3 (c)( 2) , Inc om e Tax Reg s. Bec au se we ha ve alr eady fou ndth atpe ti ti on er h adactua l kno wled ge of t he it em gi vi ng ris e to th e d efi ci en cy , sh e is no t el ig ib le forrel ie f un de r se ct io n 6 01 5( c). III. Sect io n 6 01 5( f) Sect io n 6 01 5( f) p ro vi de s an alt ern at iv e m ean s o f rel ie f fo r a reque st in g sp ou se who do es no t o th erwi se qu al ify un de r se ct io n 6 01 5( b) or ( c). Sec
.- 13 -

60 15 (f)(2 ). Sect io n 6 01 5( f)(1 ) pe rm it s re li ef fro m joi ntan d s ev eral li ab il it y if i t wou ldbe in equi tabl e to ho ldth e reque st in g s po us e li ab le foran y unpa idtax or a ny de fic ie nc y . Und er s ect io n 6 01 5( f) the Secr et ary m ay gra ntequi tabl e rel ie f to a reque st in g s po us e o n t he ba si s o f th e fac ts an d c irc um st an ces . Peti ti on er b ears th e bu rd enof p ro vi ng th atsh e is en ti tl edto equi tabl e rel ie f un de r se ct io n 6 01 5( f). See Ru le 14 2( a); Po rte r v. C omm is si on er, 1 32 T.C. 20 3, 2 10 (20 09 ). Thi s C ou rt h as juri sd ic ti on to rev ie w res po nd en t’s d en ia l o f pe ti ti on er’s reque stforequi tabl e rel ie f un de r se ct io n 6 01 5( f). See s ec. 6 01 5( e)(1 ). W e ap pl y a de no vo st an da rdof r ev ie w as wel l as a de no vo sco pe of r ev ie w. See Po rte r v. Co m m is si on er, 1 32 T.C. at 2 10
. The Co m m is si on er i ss ue d R ev . Pro c. 20 13 -3 4, 2 01 3- 43 I.R.B. 3 97 , supe rs ed in g R ev . Pro c. 20 03 -6 1, 2 00 3- 2 C .B. 29 6, t o p ro vi de gu id an ce fo r de te rm in in g wh ethe r a t ax pa y er i s en ti tl edto rel ie f fro m joi ntan d s ev eral li ab il it y . Rev . Pro c. 20 13 -3 4, s up ra, i s ef fect iv e fo r al l re qu es ts forequi tabl e rel ie f pe nd in g o n S ep te m

be r 16 , 20 13 , bef

or e a Fed eral co urt. Id . sec . 7, 2 01 3- 43 I.R.B. at40 3. Whil e th e Co urt m ay co ns id er the gu id an ce s en t fo rth inRev . Pro c. 20 13
- 34 , supr a, we are n otbo un d b y it . See, e.g ., Reil ly-Case y v. Co m m is si on er, T.C. Mem o. 2 01 3- 29 2, at*1 0 n .6; see als o S rir am v. Co m m is si on er, T.C. Mem o. 20 12 -9 1, s li p o p. at9-1 0 (n ot in g t ha t the Co urt co ns id eredth e p rev io us- 14 -

gu id el in es publ is he d u nd er s ect io n 6 01 5( f) i n R ev . Pro c. 20 03 -6 1, s up ra, b utwas no t b ou ndby the m). Rev . Pro c. 20 13 -3 4, s up ra, p ro vi de s a t hr ee-s te p ana lysis to fol lo w in
ev al ua ti ng a reque stfor

rel ie f. The fi rs t s te p c on si st s o f se ve n t hr es ho ld
co nd it io ns th atm

us t b e m et : (1 ) th e reque st in g s po us e fi le d ajoi ntreturn fo r th e ta xabl e y ear f

orwhi ch he or s he see ks rel ie f; ( 2) rel ie f is no t av ai labl e to th e reque st in g s po us e und er s ect io n 6 01 5( b) or ( c); (3) th e cl ai m forrel ie f is ti m el y fil ed ; (4 ) no ass et s wer e tr an sf erre d b etweenth e sp ou se s as pa rt o f a fraudul en t sc he m e b y

th e sp ou se s; (5) th e n on reque st in g s po us e d idno t tran sf er d is qu al ifi ed
as se ts to th e reque st in g s po us e; (6) th e reque st in g s po us e d idno t kno win gl y pa rti ci pa te in th e fi li ng of afrau du le ntjoi ntreturn; an d (7 ) ab se ntcert ai n enum erat edex cep ti on s, the tax li ab il it y fro m whi ch th e reque st in g s po us e se ek s rel ie f is att rib ut ab le to anit em of t he no nr eque st in g s po us e. Id . sec . 4.0 1, 2 01 3- 43 I.R.B. at39 9- 40 0. Re sp on de ntco nc ed es th atpe ti ti on er m eet s t he se sev en th res ho ldco nd it io ns . The sec on d s te p o f th e an al y si s p ro vi de s the fol lo win g t hr ee co nd it io ns th at , if m et , wil l qua li fy

a reque st in g s po us e fo r a s tre am li ne d d et erm in at io n o f rel ie f un de r se ct io n 6 01 5( f) wit h re sp ectto anun de rp aym en t o f a p ro pe rly rep orte d l iabi li ty: (1) he or s he is no lo ng er m arri edto , is leg al ly sep arat edfro m ,- 15 -

orha s n otbe ena m em

be r of th e sa m e h ou se ho ldas t he ot he r pe rs on at a ny tim e du rin g t he 12 -m on th pe rio d e nd in g o n t he da te of the reque stforrel ie f; ( 2) he or sh e wou ldsu ffereco no m ic ha rd sh ip if re li ef i s n otgrant ed ; an d (3 ) in a de fic ie nc y

cas e su ch as t hi s, h e o r sh e h adno kn owl ed ge or r eas on to kn ow wh en th e return was fil edth atth ere was anun de rs ta te m en t o r de fic ie nc y . A requ es t fo r eco no m ic ha rd sh ip rel ie f sh ou ldin cl ud e in fo rm at io n o n a ss et s an d l iabi li ti es an d
am ou nt s re as on ab ly neces sa ry forba si c li vi ng ex pe ns es in th e ta xp ay er’s ge og rap hi c are a. See Wien er v . Comm is si on er, T.C. Mem o. 2 00 8- 23 0, s li p o p. at 35 -3 6; sec . 30 1.6 34 3- 1( b) (4 )(i i), Pr oc ed . & Adm in . Reg s. Th e reque st in g s po us e m us t s at is fy

all th ree c on di ti on s i n o rd er t o qua li fy fora st ream li ne d de te rm in at io n. Re v. Pr oc . 20 13 -3 4, s ec. 4 .02 , 20 13 -4 3 I.R .B. at 4 00 . Becau se we fin d t ha t p et it io ne r ha d a ctua l kno wled ge of t he co m m is si on s, we fi ndth atsh e do es no t qua li fy

fora st ream li ne d d et erm in at io n o f rel ie f. The th irdst ep is av ai labl e if th e reque st in g s po us e sa ti sf ie s t he th res ho ld
co nd it io ns bu t fa il s t o s at is fy th e co nd it io ns inRev . Pro c. 20 13 -3 4, s ec. 4 .02 . A reque st in g s po us e m ay

st il l b e el ig ib le forequi tabl e rel ie f un de r se ct io n 6 01 5( f) i f, ta ki ng in to acco un t al l the fact s an d c irc um st an ces , itwou ldbe in equi tabl e to ho ld th e reque st in g s po us e li ab le forth e und erp aym en t. Id . sec . 4.0 3, 2 01 3- 43 I.R.B. at 40 0. Re v. Pr oc . 20 13 -3 4, s ec. 4 .03 li st s t he fol lo win g n on ex cl us iv e fac to rs th at- 16 -

th e Co m m is si on er t ak es in to acco un t wh ende te rm in in g wh ethe r to gra ntequi tabl e rel ie f: (1 ) m ari ta l s ta tu s; (2) eco no m ic ha rd sh ip ; (3 ) in th e cas e o f a d efi ci en cy , kn owl ed ge or r eas on to kn ow o f th e it em gi vi ng ris e to th e d efi ci en cy ; (4 ) le ga l ob li ga ti on ; (5 ) si gn ifi can t b en efi t; (6) co m pl ia nc e wit h t ax laws ; an d (7 ) m en ta l o r ph y si cal he al th . Id. No si ng le fact oris de te rm in at iv e; th e In te rn al Rev enue Serv ic e (IR S) co ns id ers all fact or s an d wei gh s t he m ap pr op ria te ly. Id. An y in di cat io n o f ab us e o r th e ex erci se of f in an ci al co nt ro l b y

th e n on reque st in g sp ou se is a fact or

th atm ay im pa ctth e o th er fa ct or s. Id
. A. Mar it al Sta tu s If the reque st in g s po us e is no lo ng er m arri edto th e n on reque st in g s po us e, th is fact orwil l wei gh in fav orof r el ie f. Forpu rp os es of R ev . Pro c. 20 13 -3 4, s ec. 4.0 3( a), a re qu es ti ng sp ou se wil l b e tr eat edas b ei ng no lo ng er m arri edto th e no nr eque st in g s po us e if

th e reque st in g s po us e is di vo rcedfro m th e n on reque st in g sp ou se . Peti ti on er an d i nt erv en ordi vo rcedon May 11, 2 01 0. Re sp on de ntm ad e th e d et erm in at io n t o d en y pe ti ti on er i nn oc en t s po us e rel ie f onNov em be r 10 , 20 10
. Thi s fa ct or

weig hs in fav orof g ran ti ng rel ie f to pe ti ti on er. B. Eco no m ic Hard sh ip Gen eral ly, eco no m ic ha rd sh ip ex is ts when co ll ect io n o f th e ta x l iabi li ty wil l re nd er the tax pa y er u nabl e to m eetba si c li vi ng ex pe ns es . Id. s ec. 4 .03 (b ),- 17 -

20 13 -4 3 I.R .B. at 4 01 . Whe th er a s po us e wil l s uf fer an e co no m ic ha rd sh ip is ba se d o n ru le s s im il ar t o s ect io n 3 01 .63 43 -1 (b )(4 ), Pro ced . & Adm in . Reg s. Re v. Pro c. 20 13 -4 3, s ec. 4 .03 (b ). The IR S co ns id ers th e reque st in g s po us e’s in co m e (in cl ud in g h ow t he reque st in g s po us e’s in co m e co m pa res to Fed eral po ve rty gu id el in es ) an d a ss et s an d wi ll co m pare the m with h is or h er s hare o f li vi ng ex pe ns es . Id. If d en y in g re li ef fro m th e joi ntan d s ev eral li ab il it y wil l n otcau se th e reque st in g s po us e to su ffer eco no m ic ha rd sh ip , th is fact or wil l b e n eu tra l. Id
. Pet it io ne r di d n otpro vi de an y ev id en ce co nc ern in g e co no m ic ha rd sh ip
. Sh e rec ei ve s l im it edch il d s up po rt a ndha d re cen tl y returne d t o wo rkaft er b ei ng la idoff by her em

pl oyer. Her Form

88 57 in di cat es th athe r m on th ly inc om e is ap pr ox im at el y

$4 ,31 5 a ndhe r m on th ly exp en se s ar e ap pr ox im at el y $3 ,51 8. Th is fact or is ne ut ral
. C. Kno wled ge or R eas on To Kn ow Thi s fa ct oris id en ti cal in all m at eri al res pe ct s t o the kn owl ed ge requi rem en t of sec ti on 60 15 (b ) an d (c ). If th e reque st in g s po us e d idno t kno w andha d n o reas on to kn ow o f th e it em gi vi ng ris e to th e u nd ers ta te m en t, thi s fa ct orwil l wei gh in fav orof r el ie f. If th e reque st in g s po us e kne w or h adreas on to kn ow o f th e it em gi vi ng ris e to th e u nd ers ta te m en t, thi s fa ct orwil l wei gh ag ai ns t re li ef. Rev . Pro c. 20 13 -3 4, s ec. 4 .03 (c). Actua l kno wled ge of t he it em gi vi ng ris e to th e- 18 -

un de rs ta te m en t o r de fic ie nc y wil l n otweig h m or e h eav il y th anan y ot he r fac to r. Id. Bec au se we fin d tha t p et it io ne r ha d kno wled ge of t he co m m is si on s, thi s fa ct or weig hs ag ai ns t g ran ti ng rel ie f. D. Leg al Obl ig at io n Thi s fa ct oris co nc ern edwith wh ethe r th e reque st in g s po us e o r th e no nr eque st in g s po us e h as a le ga l o bl ig at io n t o p ay th e o ut st an di ng tax li ab il it y pu rs ua ntto a di vo rce d ecre e o r ag reem en t. Thi s fa ct orwil l b e n eu tra l i f bo th sp ou se s h av e a l eg al ob li ga ti on , bas edon anag reem en t o r co ns en t o rd er, t o p ay th e ou ts ta nd in g i nc om e ta x l iabi li ty, th e sp ou se s ar e n otsep arat edor d iv or ced , or t he di vo rce d ecre e o r ag reem en t i s s il en t as to an y ob li ga ti on to pa y

th e o ut st an di ng in co m e ta x l iabi li ty. Id. s ec. 4 .03 (d ), 20 13 -4 3 I.R .B. at 4 02 . The d iv or ce ag reem en t b etweenpe ti ti on er an d i nt erv en orpro vi de d fo r anev ensp li t o f an y IRS in de bt edne ss . This fact oris ne ut ral
. E. Si gn ifi can t Be ne fit Thi s fa ct orco ns id ers whet he r th e reque st in g s po us e rec ei ve d asi gn ifi can t be ne fit(be y on d n orm al supp ort) f ro m th e u np ai d i nc om e ta x l iabi li ty. Norm al
supp ort i s m eas ur edby the cir cu m st an ces of t he pa rti cu la r pa rti es . Port er v . Co m m is si on er, 1 32 T.C. at 2 12 . A sig ni fic an t b en efi t m ig htbe fou ndwher e, fo r ex am pl e, th e reque st in g s po us e en joy edth e b en efi ts of alav is h l ife st y le , su chas- 19 -

own in g l ux ury

ass et s an d t ak in g e xp en si ve va cat io ns . Rev . Pro c. 20 13 -3 4, s ec. 4.0 3( e), 2 01 3- 43 I.R.B. at40 2. If t he am ou ntof u np ai d t ax or t he un de rs ta te m en t was sm al l s uc h t ha t n ei th er s po us e rec ei ve d asi gn ifi can t b en efi t, the n t hi s fa ct oris
ne utral . Id. Whethe r th e am ou ntof u np ai d t ax or the un de rs ta te m en t i s s m al l s uc h th atne it he r sp ou se rece iv eda si gn ifi can t b en efi t wi ll va ry de pe nd in g o n the fact s an d c irc um st an ces of e ach cas e. Id . Res po nd en t d et erm in eda de fic ie nc y of $ 2,9 01 ari si ng fro m

th e unr ep orte d i nc om e li st edin th e Not ic e CP2 00 0. Sp li t ev en ly, pe ti ti on er’s s ha re o f th is bu rd enwou ldbe $1 ,45 0. Th e am ou ntof t he unpa idtax was to o s m al l t o a ll ow ei th er s po us e to en joy a si gn ifi can t b en efi t. Alt ho ug h R ev . Pro c. 20 13 -3 4, s ec. 4 .03 (e), s ug ge st s t ha t we t reatth is fact or as n eu tra l b ecau se th e am ou ntof t he unpa idtax was t oo sm al l t o a ll ow ei th er s po us e to en joy a si gn ifi can t be ne fit , we dec li ne to do so . In p rev io us cas es in whi chwe rev ie wedreque st s fo r se ct io n 6 01 5( f) rel ie f un de r Rev . Pro c. 20 03 -6 1, s up ra, the pre de ces so r to Rev . Pro c. 20 13 -3 4, s up ra, we h el d t ha t the lac k o f a s ig ni fic an t b en efi t s ho ul d wei gh in fav orof g ran ti ng rel ie f. See, e.g ., DeMat to s v . Comm is si on er, T.C. Mem o. 2 01 0- 11 0; Bu tn er v . Comm is si on er, T.C. Mem o. 2 00 7- 13 6. We ho ldsi m il arl y th atun de r Rev . Pro c. 20 13 -3 4, s up ra, the lac k o f a s ig ni fic an t b en efi t s ho ul d wei gh in fav orof gr an ti ng rel ie f to pe ti ti on er.- 20 -

F. Co m

pl ia nc e WithInc om e Tax Laws Thi s fa ct orco ns id ers whet he r th e reque st in g s po us e h as m ad e a g oo d- fai th effo rt t o c om

pl y with the in co m e ta x l aws in tax y ears aft er the y ear f orwhi ch rel ie f is reque st ed . See i d. s ec. 4 .03 (f), 2 01 3- 43 I.R.B. at40 2. If t he reque st in g s po us e is in co m pl ia nc e fo r ta xabl e y ears aft er b ei ng di vo rcedfro m th e n on reque st in g sp ou se , th enth is fact orwil l wei gh in fav orof r el ie f. Id. Pe ti ti on er h as be enin
co m pl ia nc e wit h t he in co m e ta x l aws si nc e ta x year 20 07 . This fact or weig hs in fav orof g ran ti ng rel ie f to pe ti ti on er. G. Men ta l o r Ph y si cal Heal th Thi s fa ct orco ns id ers whet he r th e reque st in g s po us e was in po orph y si cal or m en ta l h eal th . This fact orwil l wei gh in fav orof r el ie f if th e reque st in g s po us e was in po orm en ta l o r ph y si cal he al th at t he ti m e th e return o r returns forwhi ch th e reque stforrel ie f rel at es were fi le d (o r atth e ti m e th e reque st in g s po us e rea so nabl y be li ev edth e return o r returns were fi le d) or a t the ti m e th e reque st in g s po us e reque st edrel ie f. Id. s ec. 4 .03 (g ), 20 13 -4 3 I.R .B. at 4 03 . The IR S co ns id ers th e na ture, ex te nt , anddu rat io n o f th e co nd it io n, i nc lu di ng th e o ng oi ng eco no m ic im pa ctof t he il ln es s. Id . If th e reque st in g s po us e was no t i n p oo r ph y si cal or m en ta l h eal th , th is fact oris ne ut ral . Id. Pet it io ne r ad m it te d t ha t s he was n otin po orph y si cal or m en ta l h eal th ; thi s fa ct oris ne ut ral
.- 21 -

H. Co nc lu si on Thre e o f th e fac to rs are n eu tra l, thr ee wei gh in fav orof g ran ti ng rel ie f to pe ti ti on er, an d o ne weig hs ag ai ns t g ran ti ng rel ie f. The o nl y fact orweig hi ng ag ai ns t re li ef i s t he kn owl ed ge fact or . Rev . Pro c. 20 13 -3 4, s up ra, m ak es cle ar tha t, in th e Co m

m is si on er’s d et erm in at io n u nd er s ect io n 6 01 5( f), kno wled ge of t he it em gi vi ng ris e to anun de rs ta te m en t o r de fic ie nc y wil l n o l on ge r wei gh m or e h eav il y th anot he r fac to rs , as i t d idun de r Rev . Pro c. 20 03 -6 1, s up ra. Rev . Pro c. 20 13 -3 4,
se c. 3.0 7, 2 01 3- 43 I.R.B. at39 8. Ba la nc in g a ll of t he fact s an d c irc um st an ces we fin d t ha t the equi ti es fav orgra nt in g p et it io ne r rel ie f un de r se ct io n 6 01 5( f). W e ho ldth atpe ti ti on er i s en ti tl edto rel ie f fro m joi ntan d s ev eral li ab il ity un de r se ct io n 60 15 (f). Any con te nt io n we h av e n otad dr es se d i s i rrel ev an t, m oo t, o r m eri tl es s. To re fle ctth e fo reg oi ng , Deci si on wil l b e en te redfor pe ti ti on er.