T.C. Mem o. 2 01 3- 29 2

UNITED STAT ES TAX COURT
BRENDA REILLY-CASEY, Pet it io ne r v. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 65 58 -1 1. Fi le d Dec em be r 30 , 20 13
.
Ri ch ardAgerUffel m an , forpe ti ti on er. Nhi T. Luu, fo r res po nd en t.

MEMORANDUM FINDINGS OF FACT AND OPINION KROUPA, Ju dg e: Thi s ca se is be fo re the Co urt i n re sp on se to a de te rm in at io n n ot ic e u nd er s ect io n 6 01 5( e) co nc ern in g p et it io ne r’s ta x l iabi li ti es 1
All sec ti on refe ren ces are t o t he Int ern al Rev enue Co de , as a m en de d a ndin 1 effe ctat a ll ti m es rel ev an t, an d a ll Ru le refe ren ces are t o the Tax C ou rt Rul es of (co nt in ue d...)- 2 -

[* 2] fo r 20 06 an d 2 00 7 (years at i ss ue ). W e m us t d eci de whet he r pe ti ti on er i s en ti tl edto rel ie f fro m

joi ntan d s ev eral li ab il it y un de r se ct io n 6 01 5. We ho ldth at pe ti ti on er i s n ot . FINDINGS OF FACT So m e o f th e fac ts ha ve be ende em edst ip ul at edpu rs uantto Ru le 91 (f) an d
are s o fo un d. Th e st ip ul at io n o f fac ts an d t he acco m pa nyin g e xh ib it s ar e in co rp or at edby thi s re fere nc e. Pet it io ne r res id edin Oreg on when sh e fi le d t he pe ti ti on . Pet it io ne r ha s b eena su cces sf ul real to r si nc e th e 1 98 0s . She oft enran ke d i n th e to p 1 0% o f he r co m

pa ny’ s an nu al sal es ran ki ng s. Dan n C as ey work edforth e sa m e co m pa ny, andpe ti ti on er an d M r. Cas ey (co ll ect iv el y , coupl e) were m arri ed in 19 93
. Pet it io ne r an d M r. Cas ey each own edva rio us si ng le -fam il y an d m ul ti un it
res id en ti al pro pe rti es be fo re, dur in g a ndaft er the y ears at i ss ue . Peti ti on er o wne d atlea stth ree p ro pe rti es du rin g t he y ears at i ss ue , in cl ud in g 7 53 4 S W Elm woo d Streetin Po rtl an d, Ore go n (El m woo d p ro pe rty). The co up le res id edat t he Elm woo d p ro pe rty between19 95 an d Oct ob er 2 00 6. Th e co up le th enres id edat (...co nt inue d) 1 Prac ti ce an d P ro cedur e, un le ss ot he rwis e in di cat ed
.- 3 -

[* 3] 50 43 SE 14 1s t Pl ace i n P ortl an d, Ore go n (1 41 stPla ce p ro pe rty) from Nov em be r 20 06 un ti l 2 01 2. Mr . Cas ey own edth e 1 41 stPla ce p ro pe rty andpa id th e m ortg ag e an d a ll ass oc ia te d e xp en se s. Pet it io ne r co ns eque nt ly leas edth e Elm woo d p ro pe rty andco ll ect ed$9 ,90 0 i n a nnua l re nt . Mr. Ca se y

pu rch as edfou r pa rcel s o f rea l p ro pe rty andin ve st edin a li m it ed li ab il it y co m pa ny du rin g t he y ears at i ss ue . Mr. Cas ey als o o wne d re si de nt ia l pr op ert ie s i n Ari zo naan d Nev ad a. Pet it io ne r pe rio di cal ly use d a nden joy edth es e pr op ert ie s, an d s he was a dd edto th e ti tl e o f th e p ro pe rty in Ari zo na . Pet it io ne r pe rio di cal ly col le ct edren ts an d fa ci li ta te d m ai nt en an ce o n M r. Cas ey ’s pro pe rti es . Peti ti on er l en t M r. Cas ey $1 61 ,25 0 i n 2 00 6 a nd20 07 , $6 0,0 00 of whi ch rem ai ns ou ts tand in g. Pe ti ti on er al so len t t o M r. Cas ey ’s ass oc ia te $8 0,0 00 th atpa rti al ly fun de d a no th er rea l p ro pe rty pu rch as e wit h M r. Cas ey . A return p rep arerass is te d p et it io ne r an d M r. Cas ey with jo in tl y

fil in g F orm s 10 40 , U.S. Ind iv idua l In co m e Tax Return, fo r th e y ears at i ss ue (joi ntreturns ). Pet it io ne r pr ov id eda co m pl et edqu es ti on na ire an d d oc um en ta ti on to th e return pr ep arer . Peti ti on er the n fo ll owe d up b y tel ep ho ne with t he return p rep arer . The return p rep arerele ctro ni cal ly file d t he joi ntreturns . Peti ti on er kne w th atth e joi nt returns ha d b een ele ctro ni cal ly file d. Pe ti ti on er re cei ve d h ardco pi es of the joi nt returns so on aft er the return p rep arerfil edth em .- 4 -

[* 4] Res po nd en t i ss ue d t o t he co up le a de fic ie nc y no ti ce fo r th e y ears at i ss ue . Res po nd en t d et erm in edde fic ie nc ie s o f $1 84 ,38 5 fo r 20 06 an d $ 36 ,75 2 fo r 20 07 (co ll ect iv el y , un de rs ta te m en ts ) an d a ccu racy-rela te d p en al ti es . Res po nd en t de te rm in edth atth e co up le ha d fa il edto rep ort i nc om e, ov ers ta te d i nt eres t an d cl ai m ederro ne ou s d educ ti on s fr om real est at e act iv it ie s (r eal est at e it em s)
. Res po nd en t al so de te rm in edth atth e co up le ha d fa il edto rep ort an Oreg on Sta te in co m e ta x re fu nd(Oreg on refu nd ) rece iv edin 20 06 an d i nc om e fro m pe ns io n o r an nu it ie s, qua li fie d d iv id en ds , cap it al ga in di strib ut io ns an d S oc ia l Se cu rit y forth e y ears at i ss ue . The co up le di d n otfil e a p et it io n wi th th is Co urt fo r red et erm in at io n o f th e d et erm in at io ns in th e d efi ci en cy no ti ce. Pet it io ne r la te r subm it te d t o re sp on de ntFo rm 88 57 , Reque stfor

Inn oc en t Sp ou se Rel ie f, an d F orm

12 15 0, Qu es ti on na ire forReque st in g S po us e. Res po nd en t d en ie d p et it io ne r’s reque stforrel ie f. Pet it io ne r ti m el y fil eda pe ti ti on 2 wit h t hi s C ou rt r eg ard in g re sp on de nt ’s den ia l o f rel ie f. Pet it io ne r an d M r. Cas ey di ss ol ve d t he ir m arri ag e in 20 12 . The u nc on te st ed di vo rce d ecre e d idno t al lo cat e an y pa ym en ts for

ou ts ta nd in g t ax es , sp ou sa l
supp ort, d iv is io n o f pr op erty or r ep aym en t o f an y

ou ts ta nd in g l oa ns .
Pet it io ne r reque st edrel ie f in Ju ly 201 0. Re sp on de ntde ni edth e reque stin 2 Decem be r 20 10
.- 5 -

[* 5] Pet it io ne r’s ne t wo rth ex ceed s $ 1 m il li on , andhe r m on th ly inc om e ex ceed s he r m on th ly exp en se s. Pet it io ne r di d n otsu fferfro m po orm en ta l o r ph y si cal he al th du rin g t he y ears at i ss ue or wh ensh e reque st edrel ie f fro m joi ntan d s ev eral li ab il it y . Pet it io ne r fi le d F ed eral in co m e ta x re tu rn s fo r 20 09 an d 2 01 0 m or e th an th ree years l at e. Pet it io ne r ha s n otfil eda Fed eral in co m e ta x re tu rnfor20 11
. OPINION W e m us t d eci de whethe r pe ti ti on er i s en ti tl edto rel ie f fro m joi ntan d s ev eral li ab il it y for th e joi nttax ob li ga ti on s fo r th e y ears at i ss ue . Peti ti on er re qu es ts rel ie f fro m

tax li ab il it ie s fr om

th e rea l es ta te it em s an d u nr ep orte d i nc om e fro m th e Oreg on refu nd . Peti ti on er co nt en ds sh e n ei th er kne w no r ha d c on st ru ct iv e kn owl ed ge of t he un de rs ta te m en ts be cau se sh e fai le d t o re vi ew th e joi ntreturns an d was un aware of M r. Cas ey ’s fin an ces . Res po nd en t ar gu es th atpe ti ti on er h as no t es tabl is he d t ha t s he m eet s the requi rem en ts forrel ie f. W e ag ree wi th
res po nd en t. I. Sta nd ardof R ev ie w andBurd enof P ro of Thi s C ou rt app li es a de no vo sco pe an d s ta nd ardof r ev ie w to a ta xp ay er’s reque stforin no cen t s po us e rel ie f. Porte r v. C omm is si on er, 1 32 T.C. 20 3, 2 10 (2 00 9) . The s po us e reque st in g re li ef g en eral ly bears th e b ur de n o f pr oo f. See- 6 -

[* 6] Ru le 14 2( a); Altv. Co m m is si on er, 1 19 T.C. 30 6, 3 11 (20 02 ), aff’d, 1 01 Fed
. App x. 3 4 (6 th Cir . 20 04 ); Yo un g v . Comm is si on er, T.C. Mem o. 2 01 2- 25 5. Pet it io ne r ha s n otpre se nt edcred ib le ev id en ce re le vantto th e d is pu te d fa ctua l is su es to sh iftth e b ur de n t o re sp on de nt . See s ec. 7 49 1( a). II. Rel ie f Fro m

Jo in t an d S ev eral Liab il it y W e b eg in with t he ge ne ral pri nc ip le s o f joi ntreturns . A m arri edtax pa y er m ay ele ctto fil e a joi ntFed eral in co m e ta x re turnwith h is or h er s po us e. Sec. 60 13 (a). Each sp ou se fil in g t he return i s jo in tl y an d s ev eral ly liab le forth e en ti re ta x s ho wn o n t he return o r ot he rwis e d et erm in edto be du e. Sec. 6 01 3( d) (3 ); Ch es hi re v . Comm is si on er, 1 15 T.C. 18 3, 1 88 (20 00 ), aff’d, 2 82 F.3d32 6 (5 th Cir
. 20 02 ). A tax pa y er m ay

see k re li ef fro m

joi ntan d s ev eral li ab il it y th atari se s fr om a joi ntreturn i n c ert ai n s itua ti on s an d s ub ject t o ava rie ty of co nd it io ns . See s ec. 60 15 . Peti ti on er co nt en ds sh e qua li fie s fo r in no cen t s po us e rel ie f un de r subs ect io n (b ) an d e qu it ab le rel ie f un de r subs ect io n (f ). 3 A. Reli ef Un de r Subs ect io n (b ) The pa rti es di sp ut e whe th er p et it io ne r is en ti tl edto rel ie f fro m joi ntan d
se ve ral li ab il it y

foranun de rs ta te m en t u nd er s ub se ct io n (b ). The re qu es ti ng
The pa rti es st ip ul at edth atpe ti ti on er i s n oteli gi bl e fo r rel ie f un de r se c. 3 60 15 (c).- 7 -

[* 7] sp ou se m

us t es tabl is h t ha t h e o r sh e d idno t kno w andha d n o re as onto kn ow of th e u nd ers ta te m en t wh ensi gn in g the return. See s ec. 6 01 5( b) (1 )(C) ; s ec. 4 1.6 01 5- 2( a), In co m e Tax Reg s. A reque st in g s po us e h adreas onto 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 i n h is or h er ci rcu m st an ces wou ld ha ve kn own 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 warran te d. Gu th v. Co m m is si on er, 8 97 F.2d44 1, 4 43 -4 45 (9t h C ir. 1 99 0) , aff’g T.C. Me m o. 1 98 7- 52 2. We con si de r th e n atur e an d re la ti ve am ou ntof t he
erro ne ou s i te m , th e co up le ’s fin an ci al si tu at io n, t he reque st in g s po us e’s educ at io na l b ack gr ou ndan d b us in es s ex pe rie nc e, whe th er the reque st in g s po us e pa rti ci pa te d i n t he act iv it y th atres ul te d i n t he erro ne ou s i te m , whet he r th e reque st in g s po us e in qu ire d abo utth e it em an d wh ethe r th e err on eo us it em rep res en te d ade pa rtu re fro m a recu rri ng pa tt ern refl ect edinpri ory ears ’ returns . Sec. 1 .60 15 -2 (c), In co m e Tax Reg s. Th is is a factua l que st io n tha t we d eci de ba se d o n t he en ti re re co rd . Guth v . Comm is si on er, 8 97 F.2dat 4 43 -4 45
. Pet it io ne r co nt en ds sh e h adno reas onto kn ow o f th e u nd ers ta te m en ts be cau se sh e d idno t s ig n t he joi ntreturns . W e fi ndth is co nt en ti on unbe li ev ab le
. A reque st in g s po us e m

us t s at is fy

fiv e requi rem en ts un de r se c. 60 15 (b ). 4 Res po nd en t co nc ed es th atjoi ntreturns were fi le d a ndpe ti ti on er t im el y so ug ht rel ie f. See s ec. 6 01 5( b) (1 )(A), (E). The ot he r two requi rem en ts are m oo t i n l ig ht of ou r ho ld in g re ga rd in g t he lac k o f kn owl ed ge requi rem en t.- 8 -

[* 8] Her t es ti m on y

is in su ffi ci en t t o e st ab li sh th atsh e d idno t s ig n t he joi nt returns . Even if s he di d n otsi gn th e joi ntreturns , th e rec or d d em on strat es th at pe ti ti on er s po ke with t he return p rep arer , aut ho riz edth e return p rep arerto fil e th e joi ntreturns , kn ew th e joi ntreturns ha d b een fil edan d re cei ve d h ardco pi es of t he joi ntreturns . Peti ti on er t aci tl y co ns en te d t o t he joi ntreturn fi li ng s fo r th e y ears at is su e. See R ei fle r v. C omm is si on er, T.C. Mem o. 2 01 3- 25 8, at*1 5. An d t he re i s no in di cat io n t ha t s he so ug htto rev ie w th e joi ntreturns aft er ea ch was fi le d o r ob jecte d t o e it he r Mr. Ca se y or t he return p rep arer . Peti ti on er i s ch arg edwith kn owl ed ge of t he joi ntreturns . See Ba rran co v. Co m m is si on er, T.C. Mem o. 2 00 3- 18
. Pet it io ne r al so kn ew ab ou t t he it em s an d s urro un di ng cir cu m st an ces su ch th atsh e sh ou ldha ve un de rs to odth e st at edtax li ab il it ie s wer e err on eo us or a t l eas t in qu ire d fu rth er. Pet it io ne r is anex pe rie nc edreal est at e b ro ke r who own s m ul ti pl e res id en ti al pro pe rti es . Peti ti on er as si st edin m an ag in g M r. Cas ey ’s pro pe rti es . Pet it io ne r al so kn ew th atMr. Cas ey own edan d s ol d re si de nt ia l p ro pe rti es , eve n le nd in g m on ey

to Mr. Cas ey

an d h is bu si ne ss partn er. Pet it io ne r was aware o f th e tra ns act io ns un de rlyin g t he real est at e it em s. See , e.g., Bo ku m v. Co m m is si on er, 94 T.C. 12 6, 1 46 (19 90 ), aff’d, 9 92 F.2d11 32 (11 th Cir . 19 93 ). Pet it io ne r ha d a du ty of in qu iry andig no redfact s t ha t wo ul d h av e le d areas on ab ly pru de nt- 9 -

[* 9] ta xp ay er t o i nqui re fu rth er. See Bu tl er v . Comm is si on er, 1 14 T.C. 27 6, 2 83
- 28 4 (2 00 0) ; Terz ia n v . Comm is si on er, 7 2 T.C. 1 16 4, 1 17 0 (1 97 9) ; Th om as on v. Co m m is si on er, T.C. Mem o. 1 99 4- 41 8. Fu rth er, p et it io ne r fai le d t o s ho w th atsh e ha d n o re as on to kn ow o f im pr op er d educ ti on s tha t wo ul d g iv e ri se to subs ta nt ia l
un de rs ta te m en ts . See Pri ce v . Comm is si on er, 8 87 F.2d95 9, 9 63 (9t h C ir. 1 98 9)
. Si m il arl y , pet it io ne r fai le d t o e st ab li sh th atsh e h adno reas on to kn ow ab ou t th e Oreg onrefu ndin co m e. The Ore go n re fu ndres ul te d fr om a joi ntSta te in co m e ta x re turnth e co up le fil ed . Peti ti on er d idno t es tabl is h t ha t (o r ev ensu gg es t wh y ) sh e was ig no ran t o f th e co up le ’s Oreg on tax li ab il it y for20 05 or t ha t s he was un aware of t he Oreg on refu nd
. Pet it io ne r ha s n otest ab li sh edth atsh e d idno t kno w or h adno reas on to kn ow o f th e und ers ta te m en ts . Pet it io ne r is un ab le to sat is fy th is requi rem en t. 5 Thu s, we n eedno t co ns id er the ot he r requi rem en ts forrel ie f un de r subs ect io n (b ). See Al t v . Comm is si on er, 1 19 T.C. at 3 13 . Accor di ng ly, pe ti ti on er i s n oten ti tl ed to rel ie f fro m

joi ntan d s ev eral li ab il it y un de r subs ect io n (b ) fo r th e y ears at i ss ue .

Pet it io ne r ne it he r reque st s n orarg ue s fo r rel ie f res ul ti ng fro m ot he r it em s. 5 W e d eem th atpe ti ti on er co nc ed es rel ie f wit h re sp ectto ot he r it em s.- 10 -

[* 10 ] B. Equ it ab le Rel ie f Und er Subs ect io n (f ) W e n ow co ns id er wh ethe r pe ti ti on er qua li fie s fo r rel ie f un de r subs ect io n (f ). The Co m m is si on er m ay

rel ie ve a reque st in g s po us e o f joi ntli ab il it y if i t i s in equi tabl e to ho ldth atsp ou se li ab le foran y de fic ie nc y

or u np ai d t ax . Sec. 60 15 (f); sec . 1.6 01 5- 4( a), In co m e Tax Reg s. Equi tabl e rel ie f un de r subs ect io n (f ) is av ai labl e o nl y

when th e sp ou se do es no t qua li fy forrel ie f un de r subs ect io ns (b)
an d (c ). Fern an de z v . Comm is si on er, 1 14 T.C. 32 4, 3 29 -3 31 (20 00 ). A requ es ti ng sp ou se m us t s at is fy

sev enth res ho ldco nd it io ns be fo re a re qu es t u nd er s ub se ct io n (f) wi ll be co ns id ered
. See Re v. Pr oc . 20 13 -3 4, s ec. 4 .01 , 20 13 -4 3 I.R .B. 39 7, 6 39 9. A reque st in g s po us e th atsat is fie s t he th res ho ldco nd it io ns m us t t he n de m on st rat e th atequi tabl e rel ie f is ap pr op ria te un de r certa in fact or s. Id . sec s. 4 .02
an d 4 .03 , 20 13 I.R.B. at40 0.

W e m ay co ns id er g ui de li ne s t he Co m m is si on er p res cri be d i n d et erm in in g 6 whe th er a re qu es ti ng sp ou se is affo rd edequi tabl e rel ie f un de r subs ec. (f) . See Pu ll in s v . Comm is si on er, 1 36 T.C. 43 2, 4 38 -4 39 (20 11 ). W e n ot e th atth e p art ie s su gg es t we ap pl y

th e p ro po se d g ui da nc e in Not ic e 2 01 2- 8, 2 01 2- 4 I.R .B. 30 9. We ha ve de cl in edto do so be cau se Not ic e 2 01 2- 8, s up ra, h adno t b eco m e fi na l. See , e.g ., Hud gi ns v. Co m

m is si on er, T.C. Mem o. 2 01 2- 26 0, at*1 5. Th e Co m m is si on er ha s s in ce p ro m

ul ga te d fi na l g ui de li ne s. See Rev . Pro c. 20 13 -3 4, 2 01 3- 43 I.R.B. 39 7. We will ev al ua te pe ti ti on er’s reque stforequi tabl e rel ie f un de r th e g ui da nc e in Rev . Pro c. 20 13 -3 4, s up ra.- 11 -

[* 11 ] 1. Th res ho ldCo nd it io ns Res po nd en t co nc ed es th atpe ti ti on er s at is fie s s ix of the sev enth res ho ld
co nd it io ns . The s ev en thco nd it io n i s t ha t t he in co m e ta x m us t b e attri bu tabl e to an it em of t he no nr eque st in g s po us e o r anun de rp aym en t re su lt in g fr om th e no nr eque st in g s po us e’s in co m e, un le ss anenum erat edex cep ti on ap pl ie s. See id
. se c. 4.0 1( 7) . Res po nd en t co nc ed es th atpe ti ti on er s at is fie s t he sev en th th res ho ld
co nd it io n wi th res pe ctto at l eas t a p orti on of e ach un de rs ta te m en t. Thu s, 7 pe ti ti on er m eet s t he th res ho ldrequi rem en ts (wit h re sp ectto po rti on s o f th e un de rs ta te m en ts ), an d we c on si de r pe ti ti on er’s reque stforequi tabl e rel ie f.

2. Fa ct s an d C irc um st an ces Test W e n ow co ns id er the sev enfact or s t o d et erm in e whe th er equi tabl e rel ie f is ap pr op ria te . 8

Res po nd en t co nc ed es th atpo rti on s o f eac h u nd ers ta te m en t s ho ul d b e 7 al lo cat edto Mr. Cas ey . See s ec. 1 .60 15 -3 (d )(2 )(i ii ) an d (i v) , Inc om e Tax Reg s. W e d o n otde te rm in e th e ap pr op ria te am ou nt s t o a ll oc at e b as edon ou r ho ld in g. A reque st in g s po us e who sat is fie s t hr ee co nd it io ns is en ti tl edto equi tabl e 8 rel ie f un de r th e Co m

m is si on er’s s tre am li ne d p ro cedur e. See R ev . Pro c. 20 13 -3 4, se c. 4.0 2, 2 01 3- 43 I.R.B. at40 0. Th e th ree c on di ti on s ar e th e co up le ’s m ari ta l st atus , po te nt ia l ec on om ic ha rd sh ip ab se ntrel ie f an d wh ethe r th e reque st in g sp ou se kn ew orha d re as on to kn ow o f th e u nd ers ta te m en t. Pet it io ne r di d n otm eet th e eco no m ic ha rd sh ip or kno wled ge co nd it io ns .- 12 -

[* 12 ] The fi rs t fa ct oris th e co up le ’s m ari ta l s ta tu s. See Rev . Pro c. 20 13 -3 4, s ec. 4.0 3( 2) (a). Th e co up le ’s m arri ag e was di ss ol ve d b y di vo rce d ecre e in Apri l 2 01 2. Thi s fa ct or

weig hs in fav orof g ran ti ng equi tabl e rel ie f. The sec on d fa ct oris whet he r pe ti ti on er wo ul d s uf fer e co no m ic ha rd sh ip if rel ie f is no t g ran te d. Se e id . sec . 4.0 3( 2) (b ), 20 13 -4 3 I.R .B. at 4 01 . Econ om ic ha rd sh ip ex is ts if s at is fy in g t he tax li ab il it y in who le or p artwou ldcau se th e reque st in g s po us e to be un ab le to pa y reas on ab le ba si c li vi ng ex pe ns es . Id. Pet it io ne r’s m on th ly inc om e co ve rs he r m on th ly exp en se s. Fu rth er, p et it io ne r ha s m or e th an$1 m il li on in equi ty in h er rea l p ro pe rty int eres ts . Sati sf y in g t he tax li ab il it ie s wo ul d n otcau se pe ti ti on er t o b e u nabl e to pay reas on ab le ba si c li vi ng ex pe ns es . Accor di ng ly, th is fact oris ne ut ral
. The th irdfact oris whet he r pe ti ti on er kne w or h adreas on to kn ow o f an
un de rs ta te m en t. See id . sec . 4.0 3( 2) (c)( i)( A), (ii i), 2 01 3- 43 I.R.B. at40 1- 40 2. As pr ev io us ly dis cu ss ed , we fin d t ha t p et it io ne r di d h av e rea so n t o kno w of t he
un de rs ta te m en ts . In ad di ti on , pet it io ne r do es no t co nt en d s he su ffer edph y si cal or m en ta l ab us e. Andwe fin d t ha t M r. Cas ey di d n otres tri ctpe ti ti on er’s acc es s t o fin an ci al in fo rm at io n. Se e id . sec . 4.0 3( 2) (c)( i)( A). Thi s fa ct orweig hs ag ai ns t gr an ti ng equi tabl e rel ie f.- 13 -

[* 13 ] The fo urth fact oris whet he r ei th er s po us e is ob li ga te d b y di vo rce d ecre e o r ot he r bi nd in g a gr eem en t t o p ay th e o ut st an di ng Fed eral in co m e ta x l iabi li ty. See id . sec . 4.0 3( 2) (d ), 20 13 -4 3 I.R .B. at 4 02 . This fact oris ne utral as t he di vo rce de cree do es no t ad dr es s t he tax li ab il it y . The fif th fact oris whet he r th e reque st in g s po us e si gn ifi can tl y be ne fit ed fro m anun de rs ta te m en t. See id . sec . 4.0 3( 2) (e). Pet it io ne r be ne fit edfin an ci al ly by leas in g the Elm

woo d p ro pe rty whil e th e co up le res id edat t he 14 1s t Pl ace pr op erty . Peti ti on er al so us edan d e njo y edth e Nev ad a an d Ari zo napro pe rti es . Thi s fa ct or

weig hs sl ig ht ly agai ns t re li ef. The si xt h fa ct oris 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 t he in co m e ta x l aws in lat er y ears . See i d. s ec. 4 .03 (2 )(f). Pet it io ne r fi le d re tu rn s fo r 20 09 an d 2 01 0 t hr ee years l at e an d h as no t fi le d areturn fo r 20 11 . This fact or

weig hs ag ai ns t re li ef. The sev en th an d fi na l fa ct oris whet he r th e reque st in g s po us e was in po or m en ta l o r ph y si cal he al th . See i d. s ec. 4 .03 (2 )(g ), 20 13 -4 3 I.R .B. at 4 03
. Pet it io ne r was no t i n p oo r m en ta l o r ph y si cal he al th when th e joi ntreturns were fil edor wh ensh e reque st edrel ie f. Thi s fa ct oris ne utral
. Into to , we fin d t ha t p et it io ne r ha s n otest ab li sh edth atequi tabl e rel ie f is ap pr op ria te . The fac ts an d c irc um st an ces in di cat e th atpe ti ti on er h adsu ffi ci en t- 14 -

[* 14 ] kn owl ed ge to de te ctth e u nd ers ta te m en ts an d t ha t s he be ne fit edfro m th e un de rs ta te m en ts . Furt he r, sh e h as no t co m pl ie d wi thth e in co m e ta x l aws in th e y ears fol lo win g t he un de rs ta te m en ts . Andsh e h as no t d em on st rat edth atsh e wou ldbe un ab le to pa y

reas on ab le li vi ng ex pe ns es . W e co nc lu de th atpe ti ti on er do es no t qua li fy

forequi tabl e rel ie f fo r ei th er u nd ers ta te m en t. Inreac hi ng th es e h ol di ng s, we h av e co ns id eredall of t he pa rti es ’ arg um en ts , an d, t o t he ex te ntno t ad dr es se d, we co nc lu de th atth ey are m oo t, i rrel ev an t o r wit ho utm eri t. To re fle ctth e fo reg oi ng , Deci si on wil l b e en te red fo r res po nd en t.