T.C. M em o . 2 0 1 7 -6 3

UNITED STATES TAX COURT

LISA F. W ILSON, Pet i t i o n er v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 2 3 8 60 -1 5
. Fi l edAp ri l 1 7 , 2 0 1 7
.
Li s a F. W i l s o n , p ro s e. Lawren ce D. Sl ed z, fo r res p o n d en t .
M EM ORANDUM FINDINGS OF FACT AND OPINION KERRIGAN, J u dg e: Th i s p ro ceed i n g was co m m en cedu nd er s ect i o n6 0 1 5 fo r rev i ew o f res p o nd en t ’ s d et erm i n at i on th at p et i t io n er i s n o ten t i tl edt o rel i ef fro m jo i ntan ds ev eral l i ab i li ty fo r 2 01 3 wi th res p ectt o a Fed eral i n co m e t ax retu rn th ats h e fi l ed as a s u rv i v in g s p o u se.- 2
-

[* 2 ] Un l es s o th erwi s e i n d i cat ed , al l s ect io n referen ces are t o th e In t ern al Rev enu e Co de i n effect atal l rel ev an tt i m es , an dal l Ru l e referen ces are t o th e Tax Co u rtRu l es o f Pract i ce an dPro cedu re. Th e i s su e fo r co n si derat io ni s wh et h er p et i t i o n er i s en t i t l edt o rel i ef u n d er s ect i o n 6 0 1 5 (b ), (c), 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 dare i n co rp o rat edi no u r fi n d i n g s b y th i s referen ce. Pet i ti o n er res i d edi n Geo rg i a wh en s h e t i m el y fi l edh er p et i t i o n . OnM arch 1 , 2 01 3 , p et i t io n er an dh er s p o u s e were l eg al l y m arri edi n W as h i n g t o n, D.C. Pet i t i o n er’ s s p ou s e d i edo n J u l y 5 , 2 0 1 3
. Pet i t i o n er an d h er s p o u se s h ared th e s am e res id en ce fo r 1 3 y ears , i n cl u di n g fro m J an uary1 , 2 0 1 3 , u n t i l th e d eat h o f p et i t i o n er’ s s p o u se. Pet i t i o n er’ s s p o us e d i ed t es t at e, l eav i n g p et i t i o n er as th e ex ecu t o r an ds o l e b en efi ci ary u n d er h er wi l l
. Du ri n g 2 0 1 3 p et i t i o n er’ s s p o u s e wo rk edfo r t h e Bo y s an dGi rl s Cl ub s o f Am eri ca, earn i n g wag es o f $ 1 8 ,6 6 1 , an drecei v edu nem p l o y m en tco m p en sat i o n o f $ 5 ,2 4 5 fro m

th e Geo rg i a Dep art m en to f Lab or. Du ri n g 2 0 13 p et i ti o n er wo rk edfo r th e Al l i an ce t o Sav e En erg y an dth e So u th eas tEn erg y Effi ci en cy

Al l i an ce (SEEA), earn edwag es o f $ 8 1 ,6 3 4 , an d recei v ed n o n em pl o y ee co m

p en s at i o no f $ 5 ,5 4 2 fro m

SEEA. Duri ng 2 01 3 p et i t i o n er an d p et i t i o n er’ s s p o u se h el da jo i n t USAA b an kacco un ti nt o wh i ch th ey d ep os i t edth ei r wag es .- 3
-

[* 3 ] Pu rs uan tt o Rev
. Ru l . 2 0 1 3 -1 7 , 2 0 1 3 -3 8 I.R.B. 2 01 , p et i t i o n er an dh er
s p o u se were el i g i b l e t o fi le a Fed eral jo i n ti n co m e t ax retu rn fo r t ax ab l e y ear 2 0 1 3
. OnJ an u ary

2 6 , 2 0 1 4 , p et i t i on er t i m el y fi leda jo i n tFo rm

1 04 0 A , U.S. In d i v i du al In co m e Tax Return , fo r t ax y ear 2 0 1 3 as a s urv i v i n g s p ou s e. Th e 2 0 1 3 retu rn rep o rt edad

ju s tedg ro s s i n co m e o f $ 10 0 ,2 9 5 an dcl ai m edp ers o n al ex em p ti o n d educt i o n s fo r p et i t i o n er, h er s p o u se, an dth ei r ch i l dren . Res p o n d en td et erm i n eda d efi ci en cy i np et i t i o n er’ s Fed eral i n co m e t ax o f $ 3 ,4 3 0 fo r 2 01 3 . Th e d et erm i n ed d efi ci en cy aro s e fro m

p et i t i o n er’ s fai l ure t o rep o rtp et i t i o n er’ s s p o us e’ s u n em pl o ym en tco m

pen s at i o n o f $ 5 , 2 4 5 an d p et i t i o n er’ s n o nem

p l o y ee co m

p en s at i o no f $ 5 ,5 42
. 1 OnJ an u ary

1 3 , 2 0 1 6 , p et i t i o n er s ub m i tt ed a Fo rm 8 85 7 , Requ es t fo r In n o cen t Sp ou se Rel i ef, t o th e In t ern al Rev en u e Serv i ce (IRS). Pet i t i o n er req u es t edrel i ef fro m l i ab il i ty fo r t he p ort i o no f t h e d efi ci en cy at tri b u tab l e t o h er s p o u se’ s u n em

p l o ym en tco m

p en s at i o n. OnFeb ru ary

5 , 2 0 1 6 , th e IRS s en t p et i t i o n er a l et t er as k in g h er fo r m ore i nfo rm at i o n . OnM arch 3 , 2 0 16 , p et i t i o n er s ub m i t t eda rev i s edco py

o f Fo rm 8 8 5 7
. In 2 0 1 0 b ot h p et i t i o n er an dh er s p o u se h adfi l ed fo r b an krupt cy . Th ey each fi led fo r b an krup t cy

b ecau s e p et i t i o n er h adl o s th er jo b o nacco u n to f a p o o r

1 Pet i t i on er co n ced edth e am o u n to f t h e d efi ci en cy .- 4
-

[* 4 ] eco n o m

y an dh er s p o u s e was n otwo rk in g wh il e o b t ai n i n g h er Ph .D. Pet i t io n er was n o l o n g er i n b an krup t cy at th e t i m e s h e s ub m i t t edh er rev i s edFo rm 8 8 5 7
. Onh er rev i s edFo rm 8 8 57 p et i t i o n er ex p l ai n ed th ats h e h adfi l eda jo i n t retu rn fo r 2 0 1 3 b as edo n th e ad v i ce o f h er acco u n t an t. Onth atfo rm s h e ad m i t t ed t o kn o w i n g th at h er s p o u s e h adrecei v edu n em p l o ym en tco m

pen s at i o ni n2 0 1 3 , b u t
s h e req u es t edrel ief fro m

l i ab i l i ty b as edo nth e fo l lo wi n g : h er s p ou s e h adrecei v ed th e u n em p l o ym en t co m

pen s at i o nb efo re t h ey

were l eg al ly

m arri ed ; s he h adn ev er recei v eda Fo rm

1 0 9 9 -G, Cert ai nGo v ern m en tPaym en t s , fo r h er s p ou s e’ s
u n em p l o ym en tco m

p en s at i o n ; an ds h e “ was u n aware t h at * * * [h er s p o us e] h ad
o p t edt o n o th av e t ax es t ak en o u to f [h er] u n em p lo ym en ti n co m e”. Attri al p et i t i o n er t es t i fi ed , p ro v i d i n g the s am e i nfo rm at i o n . Onth e Fo rm

8 8 57 p et i t i o n er rep o rt ed h er t o tal m o n th l y i n co m e an d
ex p en s es as $ 11 , 0 0 0 an d$ 8 ,8 6 0 , res p ect i v el y . Her t o t al m o n th l y i n co m e o f $ 1 1 ,0 0 0 i n cl u d ed$ 3 ,0 00 o f So ci al Secu ri ty d ep en d en tb en efi t s fo r h er t wo ch i l dren . Sh e fu rt h er ex p l ai nedth ats h e h ad$ 8 1 ,0 0 0 o f eq u it y i nh er res i d en ce
an d o wn edtwo v eh i cl es wo rt h a t o t al o f $ 5 ,0 0 0 . Sh e ch eck ed“No ” i nres p o n s e t o th e fo rm ’ s ques t i o n o f wh et h er s h e s u ffered fro m m en t al o r p h y s i cal h eal th- 5
-

[* 5 ] p ro b l em s atei th er t h e t i m et h ats h e fi l edth e 2 0 1 3 retu rno r atth e t i m e t h ats h e
s ub m i t t edh er req ues t fo r rel i ef. OnAp ri l 2 5 , 2 0 1 6, res p o n d en td et erm i n edthatp et i t i o n er was n otel i g i b l e fo r rel i ef fro m jo i n tan ds ev eral l i ab il i ty u n der s ect i o n6 0 1 5 (b ), (c), o r (f). Acco rd in g t o th e wo rk

p ap ers u s edt o d et erm i n e p et i t i o n er’ s el i g i b i l i ty fo r rel i ef, th e b as i s fo r d en i al was thatp et i t i o n er kn ew t h at h er s p o u s e h adrecei ved
u n em p l o ym en tco m

p en s at i o n i n 2 0 1 3 an d th atp et i ti o n er h ad n o tes t ab l i s h ed
eco n om i c h ard s hi p . OnOct o b er 1 9 , 2 01 6 , p et i t i on er accep t edan o ffer fro m SEEA t o wo rkas a d i rect o r o f en erg y equ it y , l o weri n g h er an n u al s al ary fro m $ 1 2 0 , 0 0 0 t o $ 1 0 7 ,5 0 0 , effect i v e No v em

b er 1 3 , 2 0 1 6. In Oct o ber 2 01 6 p et i t i o n er s ub m i t t edan up d at ed i n co m e an d ex pen s e s ch edu l e s h o wi n g th ath er t o t al m o n th l y i n co m e an dex p en s es equ al ed $7 ,7 48 an d$ 7 , 6 4 7 , res p ect i v el y . Pet i t i o n er’ s upd at ed m o nt h ly ex p en s e s ch edu l e i n cl u d ed$ 1 ,9 0 0 fo r p ri v at e s ch o o l tu it i on , $ 16 0 fo r h o u sek eep i n g , $ 2 5 0 fo r recreat i o n, an d$ 15 0 fo r t rav el
. Pet it i on er’ s up dat edb u d g etwas p o s t b an krup t cy

b u twas b as edo n th e b u d getm ai n t ai neddu ri ng b an krup t cy . 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). As a s urv i v i n g s p o u s e an dh er s p o us e’ s ex ecu t o r, p et i t i o n er- 6
-

[* 6 ] co u ldel ectt o fi l e a jo i n tretu rn wi th res p ectt o b o th h ers el f an d h er s p o u s e. See s ec. 6 0 1 3 (a)(3 ). Aft er t h i s el ect i o ni s m ad e, each s p ou s e i s jo i nt 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 s p o us e wi th th ree al t ern at iv es fo r rel i ef fro m jo i n tan d
s ev eral l iab i l i ty : (1 ) fu l l o r p art i al rel ief u nd 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 der s ub s ect i o n (c), an d(3 ) i f rel i ef i s n o tav ai l ab l e u n d er s ub s ect io n(b ) o r (c), eq u i t ab l e rel i ef u n der s ub s ect i o n(f). Th i s Co u rth as juri sd i ct io nt o rev i ew res p on d en t ’ s d en ial o f p et i t i o n er’ s req u es tfo r eq u i t ab le rel i ef u nd er s ect i o n 6 0 1 5 (b ), (c), an d(f). See s ec. 6 0 15 (e)(1 ). W e ap p l y a d e n o v o s t an d ardo f rev i ew as wel l as a d e n o vo s co p e o f rev i ew. See Po rt er v . Co m

m i s s i o n er, 1 3 2 T.C. 2 0 3 , 2 1 0 (2 0 0 9 ). I. Sect io n 6 0 1 5 (b ) In o rd er t o b e en t it l edt o rel i ef u nd er s ect i o n6 0 1 5 (b ), th e req u es t i n g s p o u s e
m u sts at i sfy

th e fo l l o wi n g co n di t i o n s : (1 ) a jo i ntretu rn h as b een m ad e fo r a t ax ab l e y ear; (2 ) o n s uch retu rn th ere i s an u n ders t at em en to f t ax at tri b ut 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; (3 ) t he req u es t i n g s p o u s e d i d n 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 atth e t i m e t h atth e ret u rn was s ig n ed ; (4 ) 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 dth e req ues ti n g s p o u se l i ab le fo r t h aty ear’ s d efi ci en cy i n t ax at tri bu t ab l e t o- 7
-

[* 7 ] s u ch u n d ers t at em en t ; an d (5 ) t h e req u es t i n g s p o u s e t i m el y el ect s rel ief u n d er
s ect i on 6 0 1 5 (b ). Sec. 6 01 5 (b )(1 ). Th es e co n d i ti o n s are s t at edi nth e co n jun ct i ve
an d , th us , a fai l u re t o m eetan y o n e o f t h em

p recl u des th e req u es t i n g s p ou s e fro m b ei n g en t i t l edt o rel i ef u n d er s ect i o n6 0 1 5 (b ). Al tv . Co m m i s s i o n er, 1 1 9 T.C. 3 0 6 , 3 1 3 (2 00 2 ), aff’ d, 1 0 1 F. Ap p ’ x 3 4 (6 th Ci r. 2 00 4 ); Hal t o m v . Co m m i s s io n er, T.C. M em o. 2 0 0 5 -2 0 9 , s l i p o p . at9
. If a s p o us e s eek i n g rel ief u n d er s ect i on 6 0 1 5(b ) h as actual kn owl ed g e o f t h e
u n d erl y i n g i tem

thatp ro ducedi n co m e t hatwas o m i t t edfro m a jo i n treturn , rel i ef fro m jo i ntan ds ev eral l i ab i li ty wi l l b e d en i ed . See s ec. 6 0 1 5 (b )(1 )(C); s ee al s o Ch es h i re v . Co m

m i s s i o n er, 1 1 5 T.C. 1 83 , 1 9 2 -1 93 (2 0 0 0 ), aff’ d , 2 8 2 F.3 d3 2 6 , 3 3 2 -3 3 4 (5 th Ci r. 2 00 2 ). Th e ru l es p ert ai n i n g t o a req u es t in g s po u s e’ s act ual kn o wl ed g e are s etfo rt h i n s ect i o n1 .6 0 1 5 -3 (c)(2 ), In co m e Tax Reg s . Sec. 1 .6 0 1 5
- 2 (c), In co m e Tax Reg s .; s ee al s o Ch es h i re v . Co m m i s s i o n er, 1 1 5 T.C. at1 95 (s t at i n g th atth e kno wl ed g e s tan d ardfo r p u rp o s es o f s ect i on 6 0 1 5(c)(3 )(C) i s an actu al an dcl ear awaren es s o f t h e ex i s t en ce o f t he i t em g i v i n g ri s e t o the d efi ci en cy ). In th e cas e o f o m i t t edi n co m e, kn o w l ed g e o f t h e i t em i n cl u d es kn o wl ed g e o f recei p t o f t h e i n co m e. Sec. 1 .6 0 1 5 -3 (c)(2 )(i )(A), In co m e Tax Reg s . Wh ere t h e un d ers t at em en tari s es fro m o m i t t edi n co m e, we em

p l o y a

“ kn o wl ed g e o f t h e tran s act i o n” t es t . Th i s t es treq u i res u s t o d et erm i n e wh et h er t h e- 8
-

[* 8 ] req u es t in g s p o u s e was aware o f t h e ci rcu m st an ces th atg av e ri s e t o th e
u n d ers t at em en to f i n co m e. See Bo ku m v . Co m m i s s i o n er, 9 4 T.C. 1 2 6 (1 9 9 0 ), aff’ d , 9 9 2 F.2 d1 1 3 2 (1 1 th Ci r. 1 9 9 3 ). A p ort i on o f t h e u n d ers t at em en to f t ax i n th i s cas e was at tri b u t ab l e t o p et i t i o n er’ s s p o u s e’ s u n rep o rt ed u n em p l o ym en t
co m p en s at i o n fo r 2 0 1 3 . Onh er rev i s edFo rm 8 8 57 an dattri al p et i t i o n er ad m i t t ed th ats h e h adactu al kn o wl ed g e th ath er s po u se h adrecei v edu nem p l o y m en t
co m p en s at i o n i n 2 0 1 3
. Pet i t i o ner t es t i fi edth atal th o u g h s h e kn ew t h ath er s p o u s e h adrecei v ed
u n em p l o ym en tco m

p en s at i o n , s h e was u n aware t h at h er s p o u s e h adel ect edn o t t o h av e Fed eral t ax wi th h el dfro m th e co m p en s at i o np aym en t s . Pet it io n er’ s s p o u s e’ s
u n em p l o ym en tco m

p en s at i o n was i n co m e t hats h o ul dh av e b een rep o rt ed o nth e 2 0 1 3 Fo rm

1 0 40 A reg ard l es s o f wh et her an y Fed eral t ax was wi th h el d . See s ecs . 6 1 (a), 8 5 (a), 6 01 3 (d )(3 ); s ee al s o Taftv . Hel veri n g , 3 1 1 U.S. 1 9 5 , 1 9 7 (1 9 4 0 ) (s t at i n g th ata jo i n tFed eral i n co m e t ax return i s treat ed as a return o f a s in g l e t ax ab l e u n i tan dt ax p ay ers el ect i n g t o s o fi l e m us trep o rtth ei r ag g reg at e i n co m e
up o n wh i ch t ax i s co m

p ut ed ). Pet i t i o n er i s n o t el i g ib l e fo r rel i ef u n d er s ect i o n 6 0 1 5 (b ).- 9
-

[* 9 ] II. Sect io n 6 0 1 5 (c) Un d er s ect i o n 6 01 5 (c) i f t h e req u es t i ng s p ou s e i s n o l o n ger m arri edt o o r i s l eg al ly s ep arat edfro m

the s p o u s e wi th wh om

h e o r s h e fi l edth e jo i ntretu rn , h e o r s h e m ay el ectt o l i m itl i ab i l it y

fo r a d efi ci en cy

as p ro v i d edi ns ect i o n6 0 1 5 (d ). Sec. 6 0 15 (c)(1 ), (3 )(A)(i )(I); DeM at t o s v . Co m m i s s i o ner, T.C. M em o . 2 0 10 -1 1 0 , s l ip o p . at1 0
. Un d er s ect i o n 6 0 1 5 (d )(3 )(A) an y i t em g i v i n g ri se t o a d efi ci en cy o n a jo i n t t ax retu rn g en eral l y s h al l b e al l o cat edt o t h e i n d i v i du al fi l i n g th e ret u rn i n th e s am e m an n er as i two u l dh av e b een al lo cat edi f th e i n d i v idual h adfi l eda s ep arat e ret u rn fo r t h e t ax ab l e y ear. Th i s el ect i o n , h o wev er, i s n o tav ai l ab l e wh ere th e Co m m i s s i o n er h as d em o n s trat edth atth e i nd i v i du al m ak in g th e el ect i o nh ad actu al kn o wl ed ge, at th e t i m e t hath e o r s h e s i g nedth e ret u rn , o f an y i t em g i v i n g ri se t o th e d efi ci en cy . Sec. 6 0 1 5 (c)(3 )(C); Ho p ki n s v . Co m m i s si o n er, 1 2 1 T.C. 7 3 , 8 6 (2 00 3 ). Th e ru l es p ert ai n in g t o a req u es t i n g s p o u s e’ s actu al kn o wl ed g e u n d er s ect i on 6 0 1 5 (c) are t h e s am e ru l es th at ap p l y u n der s ect i o n6 0 1 5 (b ). Sec. 1 .6 0 1 5- 3 (c)(2 ), In co m e Tax Reg s . Becau s e we h av e d et erm i n edth atp et i t io n er h adactu al kn o wl ed g e o f t h e i t em

g iv i n g ri s e t o th e rel ev an tp o rt i o n o f t h e d efi ci en cy , s h e i s
n o tel i gi b l e fo r rel i ef u nd er s ect i o n6 0 1 5(c).- 1 0 -

[* 1 0 ] III. Sect io n 6 0 1 5 (f) Sect io n 6 0 1 5 (f) p ro v i d es al t ern at i v e rel i ef fo r a req u es ti n g s p o u se wh o d oes
n o tqu al i fy

u n der s ect i o n 6 0 1 5 (b ) o r (c). Sec. 6 0 1 5 (f)(2 ); Po rt er v . Co m m i s s i o n er, 1 3 2 T.C. at2 06 . Sect i o n 6 0 1 5 (f)(1 ) p erm i ts rel i ef fro m jo i n tan ds ev eral l i ab i l i ty i f i two ul d b e i n equ i t ab l e t o h o l d th e req u es t i n g s p o us e l i ab l e fo r an y u np ai dt ax o r
an y d efi ci en cy . Un der s ect i o n 6 0 1 5 (f) th e Secret ary m ay g ran tequi t ab l e rel i ef t o a req u es t i ng 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 . Pet i t i o ner b ears th e b u rd eno f p ro vi ng th ats h e i s en t i t l edt o equ i t ab l e rel i ef u n der s ect i o n 6 0 1 5 (f). See Ru l e 1 4 2 (a); Po rt er v . Co m m i s s i o n er, 1 3 2 T.C. at2 1 0. Th e Co m m is s i o n er i s s u edRev . Pro c. 2 0 1 3 -3 4 , 2 0 1 3 -4 3 I.R.B. 3 9 7 , s up ers ed i n g Rev . Pro c. 2 0 0 3 -6 1 , 2 0 03 -2 C.B. 2 96 , t o p ro v i d e g u i d an ce fo r d et erm i n i n g wh eth er a t ax p ay er i s en t it l edt o equ i tab l e rel i ef fro m jo i n tan ds ev eral l i ab i l i ty . Rev . Pro c. 2 01 3 -3 4 , s up ra, i s effect i v e fo r al l req u es t s fo r eq u i t ab l e rel i ef p en di n g o n o r aft er Sep t em b er 1 6 , 2 0 1 3 , i n cl u d i n g t h o se b efo re a Fed eral co u rt . Id . s ec. 7 , 2 0 1 3 -4 3 I.R.B. at4 0 3 . Wh i le t h e Co u rtm ay co n s i d er t h e g ui d an ce s et fo rt h i n Rev . Pro c. 2 0 1 3 -3 4 , s up ra, we are n o tb o u n d b y i t ; o u r d et erm i n at i o n
u l t i m at el y

res ts o n an ev al u at i o n o f al l th e fact s an d ci rcu m s t an ces . See Pu l l i n s v . Co m m i s s i o n er, 1 3 6 T.C. 4 3 2 , 4 3 8 -4 3 9 (2 0 1 1); J o h n s o nv . Co m m is si o n er, T.C. M em o. 2 0 1 4 -2 4 0 , at * 1 0
.- 1 1 -

[* 1 1 ] Rev
. Pro c. 2 0 1 3 -3 4 , s up ra, p ro vi 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 -4 00 . Res p on d en tco n ced es th atp et i t i o n er m eet s th es e s ev en th res h o l dco n d i t i o n s . Th e s eco n ds t ep o f t h e an al y s i s p ro v i d es th ree co nd i t i o ns th at , i f m et , wi l l qu al i fy a req u es t i n g s p o us e fo r a s tream l i n ed d et erm i n at i o no f rel ief u n d er s ect i on 6 0 1 5 (f). Id . s ec. 4 .0 2 , 2 0 1 3 -4 3 I.R.B. at4 0 0
. Pet i t i o n er i s n o tel ig i b l e fo r a s tream l i n edd et erm i n at i o n b ecau s e o n e req u i rem en ti s thatth e req u es t i n g s p o u s e h ad n o kn o wl ed ge o r reas o n t o kn o w wh en th e ret u rn was fi ledth atth ere was an
u n d ers t at em en to r d efi ci en cy . See i d. Th e t h ird s tep i s av ai l ab l e i f t h e req u es t i ng s p ou s e s at i sfi 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 th e fact s an dci rcu m s t an ces , i two u l db e i n equ i t ab l e t o h o l d th e req u es t i n g s po u s e l i ab l e fo r t h e unp ai dt ax o r d efi ci en cy . Id . s ec. 4 .0 3
. Rev . Pro c. 2 0 1 3 -3 4 , s ec. 4 .0 3 , l i s t s th e fo l l o wi n g n o n ex cl u s i v e fact o rs th at th e IRS t ak es i n t o acco u n t wh en d et erm i n i n g wh et h er t o g ran t equ i t ab le rel i ef: (1 ) m ari tal s t atus ; (2 ) eco n o m i c h ard s h i p ; (3 ) i nth e cas e o f a d efi ci en cy , 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 in g ri s e t o t h e d efi ci en cy ; (4 ) l eg al- 1 2 -

[* 1 2 ] o b l i g at i o n ; (5 ) s i g n i fi can tb 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 heal th
. Id . Rel i ef m ay b e d en i edev en wh ere a m ajo ri ty o f th es e n o n ex cl u s i v e fact o rs fav ors rel ief an d v ice v ers a. See i d . s ec. 3 .0 5 , 2 0 1 3 -4 3 I.R.B. at3 98
. W e fi n dth atm o s t o f t h e fact o rs are n eu tral . Lo o k in g atth e fact s an d ci rcu m s t an ces , th e fact o rs th at h av e t h e m o s t rel ev an ce t o thi s cas e are eco n o m i c h ard s h i p an dkn o wl ed ge o r reas o nt o kn ow o f t h e i t em g i v i n g ri se t o t h e d efi ci en cy . W e fi n d t h atp et it i on er wo u l dn o tb e s ub jectt o eco n o m i c h ard s h i p i f rel i ef was n o tg ran ted
. Gen eral ly , eco n o m ic h ard s h i p ex i s ts wh en co ll ect i o no f t h e t ax l i ab i l i ty wi l l
ren d er t h e t ax p ay er u n ab l e t o m eetb as i c l i v i n g ex p en s es . Id . s ec. 4 .0 3 (2 )(b ), 2 0 1 3 -4 3 I.R.B. at4 0 1 . Th e d et erm i nat i o no f wh et h er a s po u s e wi l l s u ffer
eco n om i c h ard s hi p i s b as edo n ru l es s i m i l ar t o s ect i o n 3 0 1 .6 3 4 3 -1 (b )(4 ), Pro ced
. & Ad m i n . Reg s . Id . Th e fact s an dci rcu m s t an ces co n s id eredi n cl u de: (1 ) th e req u es t i ng s p o u s e’ s ag e, em p l o ym en ts t atu s an dh i s t o ry , ab i l i ty t o earn , an d
n u m b er o f d ep en d en ts ; (2 ) th e am o u n treas on ab ly n eces s ary

fo r fo o d , cl o th i n g , h o u s in g , m ed i cal ex p en s es , an dtran s po rt at io n ; an d (3 ) an y ex trao rd i nary ci rcu m s t an ces o r o th er fact s th e t ax p ay er rai s es . See s ec. 3 01 .6 3 4 3-1 (b )(4 )(i i ), Pro ced
. & Ad m i n . Reg s . Th e IRS co n s i d ers th e req u es t in g s p o u s e’ s i nco m e- 1 3 -

[* 1 3 ] (i n cl u di n g h o w th e requ es t i n g s po u s e’ s i n co m e co m pares t o Fed eral p o v erty g u i d el i n es ) an d as s et s an dco m p ares th em

wi th h i s o r h er s h are o f b as i c l i v i n g ex p en s es . Rev . Pro c. 2 0 1 3 -3 4 , s ec. 4 .0 3 (2 )(b ). Th e t ax pay er’ s fi n an ci al s t atu s i s as s es s edas o f t he t i m e o f t ri al . Pu l l i ns v . Co m m i ss i o n er, 1 3 6 T.C. at4 4 6 -4 4 7
. Onh er rev i s edFo rm

8 8 57 p et i t i o n er rep o rt ed m o n th ly i n co m e o f $ 1 1 ,0 0 0
an d ex p en s es o f $ 8 ,8 6 0 . On Oct o b er 1 9, 2 0 16 , p et i t i o ner accep teda d i fferen tjo b wi th SEEA, l o weri n g h er an n u al s al ary fro m $ 1 2 0 , 0 00 t o $ 1 0 7 ,5 0 0 , effect i v e No v em b er 1 3 , 2 0 1 6 . Pet i t i o n er’ s up d at edi nco m e an dex p en s e s ch edu l e s h o wed th atat th e t i m e o f t ri al h er t o tal m o n th l y i n co m e an dex p en s es h adb een redu cedt o $ 7 ,7 4 8 an d$ 7 ,6 47 , res p ect i v el y . Ho wev er, n o tal l o f p et i ti o n er’ s up d at ed
ex p en s es were n eces sari l y reas o n ab l e b as i c m o n thl y l iv i n g ex p en ses . Her m o n th l y ex p en s es i n cl u dedrecreat io n , h o u s ek eep in g , trav el , an dp ri v at e s ch o o l tu i ti o n . See s ec. 3 0 1 .6 34 3 -1 (b )(4 )(i i ), Pro ced . & Adm i n. Reg s . Eco n o m i c h ard s hi p g en eral l y d o es n o tex i s ti f t he req ues t i n g s p o u s e’ s i n co m e ex ceed s 2 50 % o f t h e Fed eral p o v ert y g ui d el i n es an dm o nt h l y i n co m e ex ceed s reas o n ab le b as ic m o n th l y l iv i n g ex p en s es b y

$ 3 0 0 . Rev . Pro c. 2 01 3 -3 4 , s ec. 4 .0 3 (2 )(b ). Pet i t i o n er’ s an n u al i n co m e i s wel l ab o v e 2 5 0 % o f t h e Fed eral p o v ert y g u i d el i nes fo r 2 01 6 , an dh er m o n thl y i n co m e ex ceed s h er reas o n ab l e b as i c
m o nt h l y l i vi n g ex p en s es b y

m o re t h an $ 30 0 . See Hal l v . Co m m is s i o n er, T.C.- 1 4 -

[* 1 4 ] M em o . 2 0 1 5 -2 2 1, at* 7 . Sh e al s o h as $ 8 1 ,0 0 0 o f equ i ty i nh er res i d en ce an d
o wn s two v eh icl es wo rt h a t o t al o f $ 5 ,0 00 . See W o rkv . Co m m i ss i o n er, T.C. M em o. 2 0 1 4 -1 9 0 , at * 2 6 ; s ee al s o s ec. 3 0 1 .6 3 4 3-1 (b )(4 ), Pro ced
. & Ad m i n . Reg s .; Rev
. Pro c. 2 0 1 3 -3 4 , s ec. 4 .0 3 (2 )(b ). Pet i t i o ner h as n o ts h o wnthats h e wo u l d
s u ffer eco n o m i c h ard s h i p i f rel i ef were d en i ed
. As d i s cu s s edp rev i ou s ly , we fi n dth at p et it i on er h adactu al kn o wl ed ge o f t h e ci rcu m s t an ces th atg av e ri s e t o th e u n d ers t at em en t o f i n co m e. Th is fact o r wei g h s ag ai n s tg ran t i n g rel i ef. Sh e was aware t hath er s p o u s e recei v edu n em p l o ym en t
co m p en s at i o n . Ab us e was n o ta fact o r, an dth ere was n o ev id en ce t h atth e
n o n req u es ti n g s p ou s e at t em p tedt o ri g i d l y

co n tro l h o u s eh o l dfi n an ces o r d en y p et i t i o n er acces s t o fi n an ci al reco rd s . Co n si d eri ng al l th e fact s an dci rcu m s t an ces , we are n o t p ers u ad ed th ati t
wo u l db e i neq u i tab l e t o d en y p et i t i o n er rel i ef u n d er s ect io n6 0 1 5(f). Ou r d eci s i on wh et h er rel i ef i s ap pro p ri at e i s n o tb as edo na s i m p l e t al l y o f fact o rs . See, e.g ., Hu d g i n s v . Co m

m i s s i o n er, T.C. M em o . 2 01 2 -2 6 0 , at* 39 -* 4 0 . Co n s i d eri n g th at p et i t i o n er h adactu al kn o wl ed g e o f h er s p o u se’ s u n rep o rt edi n co m e, an di nth e ab s en ce o f eco n o m i c h ard s h i p , we co n cl u de t h ati two u l d n o tb e i n equ i t ab l e t o d en y p et i t i o n er rel i ef u n d er s ect i o n6 0 1 5 (f).- 1 5 -

[* 1 5 ] To refl ectth e fo reg o i n g , Deci s i o n wi ll b e en t eredfo r res p o nd en t .