T.C. M em o . 2 0 1 9 -1 4 3

UNITED STATES TAX COURT

FUM ITAKE NISHI AND SACHIYO NISHI, Pet i t i o n ers v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 6 9 3 6-1 7. Fi l edOct o b er 2 3 , 2 0 1 9
.
Eri c W i l l iam

J o h n s o n , fo r p et i t io n ers . Bet h A. Nun n i n k, fo r res p o n den t .

M EM ORANDUM FINDINGS OF FACT AND OPINION KERRIGAN, J u dg e: Res p o n den td et erm i n edd efi ci en ci es i n p et i t i o n ers ’ Fed eral i nco m e t ax an ds ect i o n 6 6 6 2 (a) accu racy -rel at edp en al t i es fo r 2 0 1 1 , 2 0 1 2 , an d 2 0 1 3 (y ears i n i s su e). Un l es s o th erwi s e i nd i cat ed , al l s ect i o n referen ces are t o th e In t ern al Rev en u e Co d e i n effect atal l rel ev an tt i m es , an d al l Ru l e referen ces are t o the Tax Co urtRu l es o f Pract i ce an dPro cedure. Aft er co nces s i o n s th e s o l e- 2
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[* 2 ] i s su e fo r o ur co n s id erat i o n i s wh et h er p et i t i o n er wi fe i s en t i t l edt o i n n o cen t
s p o u se rel i ef fo r t he y ears i n i s s u e p u rs uan tt o s ect i o n6 0 15 (b ) o r (f). FINDINGS OF FACT So m e o f t h e fact s h av e b een s ti p u lat ed , an dth e s t i p u l at i on o f fact s an dth e at t ach edex h i b it s are i n co rp o rat edh erei n b y th is referen ce. Pet i t i o n ers res i d edi n M i n n es o t a wh enth ey

t i m el y fi l edthei r p et i t i o n . Pet i t i o ners m eti n J ap an an dm arri edi n 1 9 9 1
. Th ei r d au g h t ers were b o rn i n 1 9 9 1 an d1 9 9 3 i n J ap an . Atal l rel ev an t t i m es p et i t i o n ers were m arri edan dl i v i n g i n the s am e h o u seh ol d . Th ey fi l ed jo i n t Fed eral t ax retu rn s fo r t ax y ears 2 0 0 5 -1 7
. Pet i t i o ner h u s b an d was b o rn i nCh i na, an dp et i t i o n er wi fe was b o rn i n J ap an . Wh i l e i n J ap an , p et i t io ner wi fe at t en deda u n i v ers i ty an d l at er wo rk edfo r a l aw fi rm . Pet i t i on er h u sb an d m o v edt o th e Un i t ed St at es i n2 0 0 1. Pet it i o n er wi fe
an d th ei r d au g h ters m o v edt o th e Un i t edSt at es i n2 0 0 4 o r 2 0 0 5
. Du ri n g th e y ears i n i ss u e p et i t i o n er h u s b an dwo rk edfo r t h e Ti l e Sh o p , LLC (Ti l e Sh o p ), a p ub l i cl y

trad edco m

p an y th atp ro v i d es h o m e t i l e an dd eco r t h ro u g h ret ai l l ocat i o n s th ro u g ho u tth e Un i t edSt at es . Wh il e wo rk i n g fo r t h e Ti l e Sh o p , p et i t i o n er h u s b an dtrav el edex t en s i v el y t o Ch i n a an do th er co u n tri es t o s ou rce
m at eri al s . Pet i t io n er h u sb an d ’ s wag es fro m th e Ti l e Sh o p ran g edb etw een ap p ro x i m at el y $ 7 3 , 0 0 0 an d$ 8 4 ,0 0 0 p er y ear du ri n g th e y ears i n i s s u e.- 3
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[* 3 ] In Decem

b er 2 0 13 th e Ti l e Sh o p d i s co v eredth atp et i t i o n er h u s b an dh adn o t d i s cl os eda co n fl i cto f i n t eres trel at edt o h i s o wn b us i n es s i n t eres t s i n Ch in a. He b en efi t edfro m

b u si n es s d eal s wi th the Ti l e Sh o p ’ s v en d o rs th ro u g h h i s Ch i n es e b u s i n es s i n t eres t s . Sub s equ en tl y , h i s em p l o ym en twi th t h e Ti le Sh o p en d ed
. Pet i t i o ners m ai n t ai nedjo i n tan ds ep arat e b an kacco u n t s . Pet i t i o ner h u s b an d d ep os i t edh i s i n co m e fro m th e Ti l e Sh o p i n to h i s s ep arat e b an kacco u ntan d p et i t i o n ers ’ jo i n tch eck i n g an ds av i n g s acco u n t s . He d ep o si tedth e i n co m e fro m h i s Ch in es e b u s in es s i n t eres t s i n t o b o th h i s s ep arat e Ch i n es e an d U.S. b an k
acco u n t s an dp et i t i o n ers ’ jo i n t ch eck i n g acco u n t . Fo r ex am p l e, b et ween Sep tem b er an d Oct o b er 2 01 1 , $ 2 2 0,4 5 5 was d ep o s i t edi n t o p et i t i o n ers ’ jo i n t ch eck i n g acco un t , s o m e o f wh i ch was tran s ferred fro m p et i ti o n er h u s b an d ’ s Ch i nes e b an k acco u nt s. Pet i t i o ner h u s b an d h an d l edth e fam i l y ’ s fi n an ci al m at t ers . Pet i ti o ner wi fe t o o kcare o f t h e fam i ly

h o m e an dm ad e h o u s eh o ldp u rch as es . Th ey d idn o td i s cu s s
a m on th l y b u d getn or h av e a b ud g etwh i ch th ey fo l l o wedfo r h o u seh o l d ex p en s es , i n cl u d i n g ex p en s es fo r thei r d au g h t ers . Al th ou g h p et i t i o n er wi fe d i d n o two rko ut s i d e t h e h o m e o n ce s h e m ov edt o th e Un i t edSt at es , s h e m ai n t ai n ed a s ep arat e b an kacco u n t . Sh e u sedh er s ep arat e b an k acco u n t , p et it i o n ers ’ jo i n tch eck i n g acco u n t, an d p et i t i o n ers ’ jo i n tcred i t- 4
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[* 4 ] card s t o p ay

fo r h o u s eh o l dex p en s es an dfam i l y n eed s . Atth e en d o f 2 0 1 2 p et i t i o n er wi fe h ads i x cert i fi cat es o f d ep o s itt o tal i n g $ 3 7 ,4 77 . Pet i t i o n er wi fe h ad
acces s t o b ut d i dn o trev iew al l th e b an ks t at em en t s th at s he recei v ed , an ds h e h ad d i ffi cu l ty u n ders t an d in g d et ai l s o f fi n an ci al d o cu m en t s b ecau se o f t he l an g u ag e b arri er. In 2 0 1 1 a t o tal o f $ 2 28 ,4 5 5 was d ep o s i tedi n t o p et i ti o n ers ’ jo i n tch eck i n g acco u n t . Acco rd i n g t o b an k s t at em en t s fo r th is acco u n t p et i t io n ers s p en t ap p ro x i m at el y $ 4 4 5,0 0 0 o n fam i l y ex p en s es du ri n g th e y ears i n i s s u e. Fo r ex am p l e, i n No v em

b er 2 0 12 p et i t i o n ers p u rch as eda n ew v eh i cl e fo r $ 4 1,0 0 0 an d p ai dfo r i twi th a ch eckdrawn fro m th ei r jo i n t ch eck i n g acco u n t . In 2 0 0 7 p et i t i o n ers jo i n tl y p u rch as ed th ei r h ou s e i nM i n n es o ta fo r $ 4 0 0 ,0 0 0
. Th e m o rt g ag e o n th e p ro p ert y was ap p ro x im at el y

$ 3 2 0 , 0 00 . On Feb ru ary

7 , 2 0 1 2 , p et i t i o n er h u s b an dp ai d$ 19 3 ,4 5 3 t o s at i sfy th e b al an ce o f t h e m o rt g ag e, an d p et i t i o n er wi fe was aware o f t h i s p aym en t . Pet i t i o ner wi fe was s u rp ri s ed t o l earn th e reas on fo r p et i t i o n er h u s b an d ’ s d i s m i s s al fro m

th e Ti l e Sh o p . Sh e t em

p o rari l y retu rn edt o J ap an wi th thei r d au gh t ers an d co n t em

p l at edd i v o rce, b u ts h e ret u rn edt o th e Un i t edSt at es . On Feb ru ary 6 , 2 0 1 4 , p et i ti o n er wi fe wi thd rew $ 2 0 0 ,0 0 0 fro m p et i ti o ners ’ jo i n t- 5
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[* 5 ] ch eck i n g acco un tan dh ada cas h i er’ s ch eckm ad e o u tt o the Ti l e Sh o p i nan effo rtt o retu rn m o n ey

t o th e Ti l e Sh o p . Pet i t i o ner h u s b an d p rep aredp et it i o n ers ’ t i m el y fi l edjo i n t Fed eral t ax retu rn s fo r t h e y ears i n i s s u e. Pet i t i o n er wi fe s i g n edeach retu rn . Pet i t i o n ers ’ 2 0 1 1 Fed eral t ax return was s ig n edo n Feb ru ary 2 3 , 2 0 1 2 . Pet i ti o n ers s ub m i t t edan
am en d edFed eral t ax retu rn fo r 2 0 1 2 o n J u l y 2 8 , 2 0 1 4 , wh ich was accep tedan d p ro ces s ed . Th e am en d ed retu rn i n cl u d edad d i t i o n al i n co m e o f $ 3 7,6 9 6 at tri b u t ed t o earn i n g s o f fo rei g n co rp o rat i o n s . Th ei r 2 0 1 3 Fed eral t ax retu rn was fi l edo n Oct o b er 1 , 2 0 1 4 . Pet i t i o n er wi fe s i g n edth e 2 0 1 2 am en d edFed eral t ax retu rn an d th e 2 0 13 Fed eral tax retu rn aft er l earn i n g o f t h e reas o n s fo r p et i t i o n er h u s b an d ’ s d i s m i s s al fro m

th e Ti l e Sh o p . Befo re t ri al th e p art i es fi l eda jo i n ts t i p u l at i o n o f s et t l ed i s s u es , ag reei n g th at p et i t i o n ers h adu n rep o rt edi n co m e o f $ 4 2 4,0 1 5 , $ 3 8 4 ,8 82 , an d$ 6 8 7 ,2 06 fo r 2 0 1 1
- 1 3 , res p ect iv el y , an d th at th ey are l i ab l e fo r s ect i o n6 6 6 2 (a) accu racy -rel at ed p en al t i es fo r t h e y ears i n i s s u e. Th e u n rep o rt edi nco m e was at tri bu t ab le t o p et i t i o n er h u s b an d ’ s Ch i n es e b u s i nes s d eal i n g s . 1

1 Th e p art i es fu rt h er ag reedth atp et i t i o ners were en t i t l edt o a n eto p erat i n g l o s s carryb acko f $ 19 ,8 6 7 fo r 2 0 1 2 , wh i ch i s n o trefl ect edi n th e ag reed -up o n u n rep o rt edi n co m e am ou n t s .- 6
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[* 6 ] OPINION Gen eral ly , m arri ed t ax p ay ers m ay el ectt o fi l e a jo i n tFed eral i n co m e t ax retu rn . Sec. 6 0 1 3 (a). Aft er m ak i n g th i s el ect i o n, each s p o us e i s jo in t l y an d
s ev eral l y l i ab l e fo r t h e en t i re t ax du e fo r t h att ax ab le y ear. Sec. 6 0 1 3 (d )(3 ). Sect i o n 6 0 1 5 p ro v i des a req u es t i n g s p o u s e wi th th ree al t ern at i v es fo r rel i ef fro m jo i n t an ds ev eral l i ab il i ty : (1 ) fu l l o r p art i al rel i ef u n d er s ub s ect i o n(b ), (2 ) p ro p o rt i o n at e rel i ef u n d er s ub sect i o n (c), o r (3 ) i f rel i ef i s n o t av ai l ab le u n d er s ub s ect i o n (b ) o r (c), eq ui t ab l e rel i ef u nd er s ub s ect i o n(f). Ex cep t as o th erwi s e p ro v id edi n s ect i o n 6 0 1 5, the t ax pay er b ears th e b u rd en o f p ro v i n g thath e o r s h e i s en t i t l edt o s ect i o n 6 0 1 5 rel i ef. Ru le 1 4 2 (a); Al t v . Co m m i s si on er, 1 1 9 T.C. 3 0 6 , 3 1 1 (2 00 2 ), aff’ d, 1 0 1 F. Ap p ’ x 3 4 (6 th Ci r. 2 00 4 ). Pet i t i on er wi fe i s i n el i g i b l e t o el ect rel i ef u n d er s ect i o n 6 0 1 5(c) b ecau s e p et i t i o n ers are s ti l l m arri edan d co n t i n u e t o l iv e i n th e s am e h o u s eh o l d. See s ec. 6 0 1 5 (c)(3 )(A). Sect i o n 6 0 1 5(b ) To b e en t i t ledt o rel i ef u n d er s ect i o n 6 0 1 5 (b )(1 ) t h e req u es t i n g s p ou s e m u s t
s at i s fy al l o f t h e fo l l o wi n g requi rem en ts : (A) a jo i ntreturn h as b een m ad e fo r t h e t ax ab l e y ear; (B) o n s u ch return th ere i s an u n d ers t at em en to f t ax at tri b u t ab l e t o erro neo u s i t em s o f t h e n o n reques t in g s p ou s e; (C) t h e req u es t i n g s p ou s e d idn o t kn o w an d h ad n o reas o n t o kno w o f t he u n d ers t at em en t wh en th e ret u rn was- 7
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[* 7 ] s i gn ed ; (D) t ak i n g i n t o acco u n tal l th e fact s an dci rcu m s t an ces , i ti s i n equ i t ab l e t o h o l d th e req u es t in g s p o u se l iab l e fo r t h aty ear’ s d efi ci en cy i nt ax at tri b u t ab l e t o s u ch u n d ers t at em en t ; an d (E) t h e requ es t i n g s p o u s e t i m el y el ect s rel i ef u n der s ect i on 6 0 1 5(b ). Sec. 6 0 15 (b )(1 ); s ee Al tv . Co m m i s s i o ner, 1 1 9 T.C. at3 1 3
. Res p o n d en t co n ten d s th atp et i t i o n er wi fe d o es n o tm eetth e req u i rem en t s o f s ect i o n 6 0 15 (b )(1 )(C) an d(D). Res p o n d en targ u es th atp et i ti o n er wi fe i s i n el ig i bl e fo r rel i ef u nd er s ect i o n 6 0 1 5 (b )(1 )(C) b ecau se s h e s h o u l dh av e kn o wnth atth ei r jo i n t Fed eral t ax retu rn s
u n d ers t at edh er h u s ban d ’ s i nco m e. Sect i o n 6 01 5 (b )(1 )(C) req u i res th ati ns i g n i n g th e ret urn , th e i n d i v i du al s eek in g rel i ef d idn o tkn o w an dh adn o reas o n t o kn o w o f th e u n ders t at em en t . A reques t i n g s p o u s e h as kno wl ed g e o r reas o nt o kn o wo f an
u n d ers t at em en ti f h e o r s h e act u al l y kn ew o f t he u n d ers t at em en to r i f a reas o n ab l e p ers o n i n s i m i l ar ci rcu m s t an ces , wh en h e o r s h e s i gn edth e retu rn , co u l db e ex p ect edt o kn o w th atth e ret u rn co n t ai n edan u n d ers t at em en t . Ho p ki n s v . Co m m i s s i o n er, 1 2 1 T.C. 7 3 , 7 7 (2 0 0 3 ); s ec. 1 .6 0 1 5-2 (c), In co m e Tax Reg s . Co n seq u en t l y , a req u es t i n g s p o u s e h as a du ty o f i n qu i ry wi th res pect t o th e Fed eral t ax return fi l ed . Bu t l er v . Co m m i ss i o ner, 1 14 T.C. 2 7 6 , 2 8 3-2 8 4 (2 0 0 0 ), ab ro g at edo n o ther g ro u n d s b y Po rt er v . Co m

m i s s i o ner, 1 3 2 T.C. 2 0 3 (2 0 0 9 ). Th e du ty o f i n qu i ry

i s s ub ject i v e, fo cu s i n g o n th e i nd i v i du al s eek i ng rel i ef. Bu t l er v .- 8
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[* 8 ] Co m m i s s i o n er, 1 1 4 T.C. at2 84 . Fact o rs t o co ns i d er are: (1 ) t he req u es t i n g
s p o u se’ s l ev el o f edu cat io n ; (2 ) t h e req u es t i n g s p ou s e’ s i n v o lv em en ti nth e fam i l y ’ s b u s i n es s an d fi n an ci al affai rs ; (3 ) t h e p res en ce o f ex p en d i tu res th at ap p ear l av i s h o r u n u su al wh en co m p aredt o th e fam i l y ’ s p as tl ev el s o f i n co m e, s t an d ardo f l i v i n g , an ds p en d i n g p at t ern s ; an d(4 ) t h e cu lp ab l e s p o u s e’ s ev as i v en es s an dd ecei t co n cern i n g the co upl e’ s fi n an ces . Id
. Pet i t i o ner wi fe h ad a du ty t o i n qu i re g i v en th e am ou n to f p et i t i o n er h u s b an d ’ s wag es i n co n tras tt o th ei r s p en d i n g . Bet ween Sep t em b er an dOct o b er 2 0 1 1 , $ 2 2 0 ,4 5 5 was d ep o s i t ed i n t o p et i t io n ers ’ jo i n tch eck i n g acco u n t . Ev en th o u g h p et i t i o ner wi fe t es t i fi edth ats h e h add i ffi cu l ty u n d ers tan d i ng fi n an ci al d o cu m en t s an ds p eak i n g En g l i s h , s h e h adh er o wn b an kacco u n t, cert ifi cat es o f d ep os i t , an dau th o ri ty

t o wri t e ch eck s fo r t h ei r jo in tacco u n t. Sh e fu rth er t es t i fi ed th ats h e was cap ab le o f u nd ers t an d i n g b an ks t at em en t s wh en s h e o p en edth em . Du ri n g 2 0 1 2 p et i t i o n er wi fe was aware t h at p et it io n er h u s b an dh adp ai d fu l l y th e b al an ce o f t hei r m o rt g ag e, wi th i nfi v e y ears o f p et i ti o n ers ’ p u rch as i n g th ei r h om e. If s he h adrev i ewedth e b an ks t at em en t s , s h e wo ul d h av e kn own th at i n co m e i n ad d it i o n t o h er h us b an d ’ s wag es was b ei n g d ep o s i t ed an dth atth ei r s p en di n g ex ceed edh i s wag es .- 9
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[* 9 ] Pet i t i o ners d i dn o td is cu s s a b u d g et , an dp et i t i o n er wi fe was u n aware o f an y
m o nt h l y s p en d i n g l i m i t s . Sh e u s edh er s ep arat e ch eck i n g acco u n t , p et it i on ers ’ jo i n t ch eck i n g acco u n t, an dth ei r cred i t card s t o m ak e m o n th ly h o u seh o l dan d fam i l y p u rch as es . Al th o u g h p et i t i o n ers t es t i fi edth ats h e was fru g al i nh er s p en di n g h ab i t s , a reas on ab l e p ers on i n s im i l ar ci rcu m s t an ces wo u l d h av e i n qu i red h o w they co u l d affo rd th ei r y earl y h o u s eh ol dex p en s es . When p et i t i o ner wi fe
s i gn edth ei r jo i n t Fed eral t ax retu rn fo r 2 0 1 1 , s h e h adreas o nt o kn o w that p et i t i o n er h u s b an dh adu n d ers t at edh i s i n co m e. Pet i t i o ner wi fe t es t i fi edth ats h e d i dn otkn ow ab o u th er h u sb an d ’ s Ch i n es e b u s i n es s d eal i n g s o r t h ath e h adi n co m e fro m s o urces o th er t h an th e Ti l e Sh o p
u n t i l th e en do f 2 0 1 3 . InFeb ru ary 2 0 1 4 s h e s ig n ed a $ 2 0 0,0 0 0 ch eckt o th e Ti l e Sh o p , m o re t han s ev enm o n th s b efo re s h e s i g n edp et it i on ers ’ jo i n t Fed eral t ax retu rn fo r 2 0 1 3 . Sh e s i g n edth ei r 2 0 1 2 am en d edFed eral t ax retu rnaft er b eco m i n g aware o f h er h u sb an d ’ s Ch in es e b u s i n es s d eal in g s . Sh e h adkn o wl ed g e o f t h e
u n rep o rt edi n co m e wh en s h e s i g n edth e 2 0 1 3 Fed eral t ax retu rnan dth e 2 0 1 2
am en d edFed eral t ax retu rn . Sect io n 6 0 1 5 d o es n o tp ro t ecta s p ou s e wh o tu rn s a b l in dey e t o fact s read i l y av ai l ab l e t o h er. Ch arl t o n v . Co m m i ss i on er, 1 1 4 T.C. 3 3 3 , 3 4 0 (2 00 0 ). W e co n cl u d e th atp et i t i on er wi fe i s n o t en t i tl edt o rel i ef u n d er s ect io n6 01 5 (b ) s i n ce- 1 0 -

[* 1 0 ] s h e h ad reas o n t o kn o w o f t h e u n d ers tat em en t s . Ev en i f we co ncl u d edth at p et i t i o n er wi fe d i dn oth av e kn o wl ed g e o r reas o nt o kn o w o f t h e u n ders t at em en t s , s h e wo u l dn o tb e el i g i bl e fo r rel i ef u n d er s ect i o n6 0 1 5 (b )(1 ) b ecau se s h e d o es n o t
m eetth e req ui rem en to f s ect i o n 6 0 1 5 (b )(1 )(D). Th e fact o rs th atwe co n s i der i n d et erm i n i n g wh eth er i two u l db e i n equ i t ab l e t o h o l dp et i t i o n er wi fe l i ab l e fo r t h e d efi ci en cy

i n t ax at tri b u tab l e t o th e u nd ers t at em en ts fo r p urp o s es o f s ect i o n 6 0 1 5 (b ) are t h e s am e fact o rs th atwe co n si d er i n d et erm i ni n g i neq u it y fo r p u rp o s es o f s ect i o n 6 0 15 (f). See Al t v . Co m m i s s i o ner, 1 1 9 T.C. at3 1 6; J on es v . Co m m i s s i o n er, T.C. M em o . 2 0 1 0 -1 1 2 , s l i p o p . at1 5
. Rev . Pro c. 2 0 1 3 -3 4 , s ec. 4 .0 3 , 2 01 3 -4 3 I.R.B. 3 9 7 , 4 0 0 -4 0 3 , m o d i fy i n g an d
s up ers ed i n g Rev . Pro c. 2 0 0 3 -6 1 , 2 0 03 -2 C.B. 2 96 , l i s t s th e fo l l o wi n g
n o n ex cl us i v e fact o rs th at th e Co m m i s s i o n er t ak es i n to acco u n twh en d et erm i n i n g wh et h er t o g ran tequ it ab l e rel i ef u n der s ect io n6 01 5 (f): (1 ) m ari t al s tatu s ; (2 ) eco n o m i c h ard s h ip ; (3 ) i n th e cas e o f u n ders t at em en t , kn o wl ed g e o r reas o n t o kn o w o f t h e i t em

g i v i n g ri s e t o th e u n ders t at em en t ; (4 ) l eg al o b l i g at i o n ; (5 ) s i gn i fi can t b en efi t ; (6 ) co m p l i an ce wi th t ax l aws ; an d(7 ) m en t al o r p h y s i cal h eal th. Lo o k i n g atth e fact s an dci rcu m s t an ces , we co ncl u d e t h ati two u l dn o tb e i n equ i t ab l e t o d en y p et i ti o n er wi fe rel i ef.- 1 1 -

[* 1 1 ] W e p rev i ou s ly

co ncl u d edth ats h e h adreas o nt o kn o wo f t h e
u n d ers t at em en t s . Th e rem ai n i n g fact o rs are ei ther n eu tral o r wei g h ag ai n s trel i ef. M ari t al s t atu s i s n eu tral b ecau s e p et i t i o n ers are m arri edan dl i v e i n t h e s am e h o u s eh o l d . Leg al o b l i g at io n i s s i m i l arl y n eu tral b ecau s e p et i t i o n ers are n o t
s ep arat edo r d iv orced . See i d . s ec. 4 .0 3(2 )(d ), 2 01 3 -4 3 I.R.B. at4 0 2
. Pet i t i o n er wi fe p ro v i d edn o ev i den ce o f eco n o m i c h ard s h ip o r p o o r m en t al o r p hy s i cal h eal th. Pet i t i o ner wi fe b en efi t edfro m th e u n d ers t at em en ts o f i n co m e. Th i s fact o r wei g h s ag ai n s trel i ef. Duri n g t h e y ears i ni s s ue p et i t i o n ers l i v edb ey o n dp et i t i o n er h u s b an d ’ s Ti l e Sh o p s al ary . In co m e fro m h is Ch i n es e b u si nes s i n teres t s al l o wed p et i t i o n ers t o p ay

o ff t he m o rt g ag e o nth ei r h om e an d p urch as e a n ew v eh icl e wi th
cas h duri n g 2 0 1 2 . W e fi n d th atp et i t i on er wi fe d i dn o tm eeth er b u rd ent o s h o w th ats h e i s en t i t l edt o equ i t ab le rel i ef. See Ru l e 1 4 2 (a). Sect i o n 6 0 1 5(f) Sect io n 6 0 1 5 (f) p ro v i d es an al t ern at i v e m ean s o f rel ief fo r a req u es t i n g s p o u se wh o d oes n o to th erwi se qu al i fy u n d er s ect i o n6 0 15 (b ) o r (c). Sec. 6 0 1 5 (f)(1 ); Po rt er v . Co m m i s s i o n er, 1 3 2 T.C. at 2 0 6 . Sect i on 6 0 1 5(f)(1 ) p erm it s rel i ef fro m jo i n t an ds ev eral l i ab i l i ty i f i t wo u l db e i n equ it ab l e t o h o l d t h e req u es t i ng s p o u s e l iab l e fo r an y u np ai dt ax o r an y

d efi ci en cy . Un d er s ect i o n- 1 2 -

[* 1 2 ] 6 0 1 5 (f) t h e Secret ary m ay g ran tequi t ab l e rel ief t o a req u es t i n g s p o u s e o n th e b as i s o f t h e fact s an dci rcu m s t an ces . Th e Co m m is s i o n er i s s u edRev . Pro c. 2 0 1 3 -3 4 , s up ra, t o p ro v i d e g u i d an ce fo r d et erm in i ng wh et her a t ax p ay er i s en t i t l edt o equi t ab le rel ief fro m jo i n tan d
s ev eral l iab i l i ty . Wh il e t h e Co urtm ay co ns i d er t h e g u i dan ce s etfo rt h i nRev
. Pro v . 2 01 3 -3 4 , s up ra, we are n otb o un db y i t ; o u r d et erm in at i o nu l t i m at el y res t s o n
an ev al u at i o n o f al l th e fact s an dci rcu m st an ces . See Pu ll i ns v . Co m m i s s i o n er, 1 3 6 T.C. 4 3 2 , 4 3 8 -4 39 (2 0 1 1); Jo h ns o nv . Co m m i s s io n er, T.C. M em o . 2 0 1 4 -2 4 0 , at* 1 0
. Rev . Pro c. 2 0 1 3 -3 4 , s up ra, p ro v i d es a t h ree-s t ep an al y s i s fo r ev al u at i n g a req u es tfo r eq u i t ab le rel i ef. Th e fi rs ts t ep co n s i s t s o f s ev en th res h o l dco n d i t i o n s th atm u s tb e m et . Id . s ec. 4 .0 1 , 2 0 1 3 -4 3 I.R.B. at3 9 9 . Res p o n den tco n ced es th at p et i t i o n er wi fe m eet s th e s ev en th res ho l d co nd i t io n s . Th e s eco n ds t ep o f th e
an al y s i s p ro v i d es th ree co n di t i o n s th atm u s t b e m ett o qu al i fy

fo r a s tream l i n ed d et erm i n at i o n o f rel i ef u n der s ect i o n6 0 15 (f). Id . s ec. 4 .0 2 , 2 0 13 -4 3 I.R.B. at4 0 0
. Th e fi rs t co n d it i on i s thatthe req u es t i n g s p ou s e i s n o l o n ger m arri edt o th e
n o n req u es ti n g s p ou s e. Id
. s ec. 4 .0 2 (1 ). Si n ce p et i t i o ners are s t i l l m arri ed , p et i t i o n er wi fe d o es n o t qu al ify fo r a s tream l i n edd et erm i n at io n .- 1 3 -

[* 1 3 ] A th i rds t ep i s av ai l ab le i f t he req u es ti n g s p o u se s at i s fi es th e th res h o l d
co n di t i o n s b u tfai l s t o s at i s fy th e co n d i t i o n s fo r a s tream li n edd et erm in at i o n . A req u es t i ng s p o u s e m ay

s t i l l b e el i g i b l e fo r eq u it ab l e rel i ef u n d er s ect i o n6 0 1 5 (f) i f, t ak i n g i n t o acco u n t al l o f t h e fact s an dci rcu m st an ces , i t wo u l db e i neq u i tab l e t o h o l dth e req u es t i n g s po u s e l iab l e fo r t h e u npai dt ax o r d efi ci en cy . Id . s ec. 4 .0 3 , 2 0 1 3 -4 3 I.R.B. at4 0 0 . W e p rev i ou s l y co n s i d eredth e fact o rs th atres po n d en t
co n si d eredwh en t ak i n g i n t o acco u n twh et h er t o g ran t equi t ab l e rel ief i no u r
an al y s i s o f s ect i o n 6 0 15 (b )(1 )(D) an d h el dth ere t h atp et i t i o n er wi fe i s n o ten t i t l ed t o equ it ab l e rel i ef. Fo r t h e s am e reas o n s , p et it i on er wi fe i s n o ten t i t l edt o equ it ab l e rel i ef p u rs u an tt o s ect i o n6 0 1 5 (f). W e h av e co n s id eredal l arg u m en t s m ad e, an dt o th e ex t en t n o tm en t i o n ed ab o ve, we co ncl u d e th atth ey are m oo t , i rrel ev an t , o r wi th o u tm eri t . To refl ectthe fo reg o i n g , Deci s i o n wi ll b e en t ered
u n der Ru l e 1 5 5
.