# 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 13 -4 1

UNITED STAT ES TAX COURT
ERICA L. ALVARADO, Pet it io ne r, AND THO MAS J . SZISZAK II, f.k.a
.

THOMAS J. M ORRIS SEY, Int erv en orv. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 18 67 8- 11 S. Fil edMay 29, 2 01 3.

Eric a L. Alv arad o, p ro se. Tho m as J. Szi sz akII, pr o s e. Bryan J. Do ts on , for

res po nd en t.

SUMM ARY OPINION VASQUEZ, Ju dg e: Thi s ca se was h eardpu rs ua ntto th e p ro vi si on s o f
se ct io n 7 46 3 o f th e In te rn al Rev enue Co de ineffe ctwhen th e p et it io n was fil ed
.- 2 -

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 o pi ni on sh al l n otbe tre at edas p rece de ntforan y ot he r cas e. Thi s p ro ceed in g was co m m en cedun de r se ct io n 6 01 5( e) 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 08 with re sp ectto a Fed eral in co m e ta x re tu rnsh e fi le d wi th he r fo rm er s po us e. The i ss ue s p res en te d fo r co ns id erat io n a re wh ethe r pe ti ti on er is en ti tl edto rel ie f un de r se ct io n 6 01 5( b) , (c), o r (f). All sec ti on refe ren ces are t o th e In te rn al Rev enue Co de ineffe 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 P ro cedur e. Bac kg ro un d So m e o f th e fac ts ha ve be enst ip ul at edan d a re s o fo un d. Th e st ip ul at io n o f fact s an d t he att ach edex hi bi ts are i nc or po rat edby thi s re fere nc e. Pet it io ne r res id edinTexa s wh enth e p et it io n was fil ed
. Pet it io ne r an d Th om as J. Szi sz akII were m arri edon Octo be r 26 , 20 02
. Dur in g t he ir m arri ag e p et it io ne r worke d a s an ath le ti c tr ai ne r fo r th e El Pa so In de pe nd en t Sc ho ol Dis tri ct . After l eav in g t he U.S. Arm y in20 03 Mr. Szi sz ak
worke d fo r th e New Mex ic o S ta te Po li ce Dep artm en t an d t he Don a AnaCo un ty Sh eri ff’s Dep art m en t u nt il aro un d 2 00 6 o r 20 07 . There aft er Mr . Szi sz akbe cam e a fu ll -ti m e stud en t. He was a fu ll -ti m e stud en t i n 2 00 8.- 3 -

So m et im e in th e fal l o f 20 08 pe ti ti on er an d M r. Szi sz akde ci de d t o s ep arat e. Mr. Sz is zakne ed edm on ey to m ov e o utof t he ir h om e an d d eci de d t o wi th dr aw hi s ret ire m en t b en efi ts fro m

th e Publ ic Em

pl oyees R et ire m en t As so ci at io n o f New Mex ic o. Inord er fo r Mr. Sz is zakto withd raw the fun ds , bo th he an d p et it io ne r ha d t o s ig n a ndha ve no tariz eda te rm in at io n n ot ic e. Mr. Szi sz akto ldpe ti ti on er sh e n eed edto si gn th e te rm in at io n n ot ic e b ecau se he co ul d n otm ov e o utwitho ut th e fu nd s fr om

hi s re ti rem en t ac co un t. Alt ho ug h s he do es no t re cal l s ig ni ng it , pe ti ti on er’s s ig na ture i s o n t he term in at io n n ot ic e. Bo th pe ti ti on er an d M r. Szi sz ak si gn edth e te rm in at io n n ot ic e an d h aditno ta riz edon Sep te m be r 24 , 20 08 . After
rece iv in g $ 9,7 69 fro m

hi s re ti rem en t ac co un t, p et it io ne r m ov edou t o f th e h om e so m et im e inOcto be r 20 08 . Peti ti on er d idno t re cei ve an y of the pro ceed s fr om

th e te rm in at io n o f Mr. Sz is zak ’s ret ire m en t ac co un t. Pet it io ne r an d M r. Szi sz akdi vo rcedon Marc h 1 7, 2 00 9. Th e d iv or ce d ecre e do es no t m en ti on Mr. Szi sz ak ’s ret ire m en t ac co un t o r ad dr es s wh o i s re sp on si bl e fo r pa y in g a ny tax de fic ie nc y for20 08 . Also on Marc h 1 7, 2 00 9, p et it io ne r an d Mr. Sz is zakfil edth ei r joi ntFed eral in co m e ta x re tu rnfor20 08 . The $ 9,7 69 Mr. Szi sz akrece iv edfro m

th e te rm in at io n o f hi s re ti rem en t ac co un t was no t re po rte d
on th e ta x re turn , whi chrep orte d o nl y wage s p et it io ne r earne d. Pe ti ti on er an d M r. Szi sz akrep orte d a$3 ,39 0 o ve rp aym en t o f ta x o n t he return. OnMarc h 2 7, 2 00 9,- 4 -

th e In te rn al Rev enue Serv ic e (IR S) ref un de d t he en ti re am ou ntof t he ov erp aym en t by dir ectde po si t i nt o a n a cco un t p et it io ne r own ed . Thatsame day , pet it io ne r is su eda ch eckto Mr. Szi sz ak for$1 ,03 9.6 8 p ur su an t t o the ir v erb al ag reem en t reg ard in g t he 20 08 refund
. Ina no ti ce o f de fic ie nc y

date d Dec em

be r 27 , 20 10 , th e IRS de te rm in edth at pe ti ti on er an d M r. Szi sz akwere joi nt ly liab le for$2 ,84 7 o f ta x. OnJu ne 24 , 20 10 , pe ti ti on er fi le d wi th th e IRS Fo rm 88 57 , Reque stforInn oc en t Sp ou se Rel ie f. On Aug us t 1 7, 2 01 1, the IRS 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 reque stforin no cen t s po us e rel ie f be cau se itde te rm in edth atsh e kne w or h ad
reas onto kn ow o f th e und ers ta te m en t, s he fai le d t o s ho w itwou ldbe un fai r to ho ldhe r res po ns ib le , andsh e b en efi te d fr om th e ta x re fundinth e fo rm of refu nd ab le cred it s. Pet it io ne r co nt es te d t ha t n ot ic e o f de te rm in at io n i n ape ti ti on 1 fil edAug us t 1 1, 2 01 1. OnDecem be r 5, 2 01 1, M r. Szi sz akfil eda no ti ce o f in te rv en ti on an d was ad de d a s a p arty to th is cas e. Afte r th e ta xabl e y ear 2 00 8 p et it io ne r ha s co m pl ie d wi th all in co m e ta x la ws.

In h is pre tri al m em or an du m an d a t tria l re sp on de ntco nc ed edth at 1 pe ti ti on er d idno t re cei ve a ta x b en efi t fr om refu nd ab le cred it s b ecau se th e am ou nt withh el d fr om

he r wag es ex ceed edth e am ou ntof r efu nd edcred it s.- 5 - Dis cu ss io n Marrie d t ax pa y ers m ay

ele ctto fil e a joi ntFed eral in co m e ta x re tu rn . 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 accu racy of th e return a ndth e en ti re t ax du e. Sec. 6 01 3( d) (3 ). Pur su an t t o s ect io n 60 15 (a), h owe ve r, a ta xp ay er m ay see k re li ef fro m

joi ntli ab il it y . Pet it io ne r co nt en ds sh e is en ti tl edto rel ie f fro m joi ntan d s ev eral li ab il ity pu rs ua ntto sec ti on 60 15 (b ), (c), o r (f). To qu al ify for re li ef p ur su an t t o s ect io n 60 15 (b ), th e reque st in g s po us e m us t es tabl is h t ha t: a joi ntreturn was fil ed ; the re was anun 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 th e n on reque st in g sp ou se ; atth e ti m e o f si gn in g t he return, the sp ou se see ki ng rel ie f di d n otkn ow an d h adno reas onto kn ow o f th e und ers ta te m en t; th e reque st in g s po us e so ug ht rel ie f withi n t wo years o f th e fi rs t co ll ect io n a ct iv it y rel at in g t o the li ab il it y ; an d, ta ki ng in to acco un t al l the fact s an d c irc um st an ces , itis in equi tabl e to ho ldth e sp ou se see ki ng rel ie f li ab le for th e d efi ci en cy

intax att rib ut ab le to th e un de rs ta te m en t. Sec . 60 15 (b )(1 ). Sect io n 6 01 5( c) p erm it s a r eque st in g s po us e to see k re li ef fro m joi ntan d
se ve ral li ab il it y

an d e le ctto all oc at e a d efi ci en cy to a no nr eque st in g s po us e if th e fo ll owi ng co nd it io ns are m et : a jo in t re tu rnwas fi le d; at t he ti m e o f th e el ect io n, th e reque st in g s po us e was sep arat edor d iv or cedfro m th e n on reque st in g s po us e o r- 6 -

ha s n otbe ena m em

be r of th e sa m e h ou se ho ldas t he no nr eque st in g s po us e atan y ti m e dur in g t he 12 -m on th pe rio d e nd in g o n t he da te of t he reque stforrel ie f; t he reque st in g s po us e so ug htrel ie f withi n t wo years o f th e fi rs t co ll ect io n a ct iv it y rel at in g t o t he li ab il it y ; an d t he reque st in g s po us e d idno t h av e actua l kno wled ge , atth e ti m e o f si gn in g t he joi ntreturn, o f th e it em gi vi ng ris e to th e d efi ci en cy . Sec. 6 01 5( c)(3 ). Pet it io ne r di d n otrece iv e an y of t he pro ceed s fr om

th e te rm in at io n o f Mr. Szi sz ak ’s ret ire m en t ac co un t. Sh e d id , ho wev er, s ig n a ndha ve no tariz edth e te rm in at io n n ot ic e aft er Mr . Szi sz ak to ldhe r he ne ed edto withd raw the fun ds in hi s re ti rem en t ac co un t i n o rd er t o a ffo rdto m ov e o utof the ir m art ia l h om e. Thu s, pe ti ti on er h adreas on to kn ow o f th e und ers tate m en t an d h adactua l kno wled ge of th e it em (i.e ., Mr. Szi sz ak ’s term in at io n o f hi s re ti rem en t ac co un t) tha t g av e ri se to th e d efi ci en cy . See Ch es hi re v . Comm is si on er, 1 15 T.C. 18 3, 1 95 (20 00 ) (s ta ti ng th atth e kno wled ge st an dardforpu rp os e o f se ct io n 6 01 5( c)(3 )(C) is anactua l an d cl ear a waren es s o f th e ex is te nc e o f th e it em gi vi ng ris e to th e d efi ci en cy ), aff’d, 28 2 F .3d32 6 (5 thCir . 20 02 ). Acco rd in gl y , pet it io ne r is no t en ti tl edto rel ie f fro m th e 2 00 8 l iabi li ty pur su an t t o s ect io n 6 01 5( b) or ( c). Pet it io ne r co nt en ds , inth e al te rn at iv e, th atsh e is en ti tl edto rel ie f pu rs ua nt to sec ti on 60 15 (f). Sec ti on 60 15 (f) p erm it s re li ef fro m joi ntan d s ev eral li ab il ity if- 7 -

itwou ldbe in equi tabl e to ho ldth e in di vi du al li ab le forany unpa idtax or de fic ie nc y . Sec. 6 01 5( f)(1 ). Und er s ect io n 6 01 5( f), th e Sec ret ary m ay grant equi tabl e rel ie f to a reque st in g s po us e o n t he ba si s o f al l the fact s an d ci rcu m st an ces . Id. Pet it io ne r be ars th e b ur de n o f pr ov in g tha t s he is en ti tl edto equi tabl e rel ie f un de r se ct io n 6 01 5( f). See Rul e 1 42 (a); Po rte r v. C omm is si on er, 13 2 T.C. 2 03 , 21 0 (2 00 9) ; Al t v . Comm is si on er, 1 19 T.C. 30 6, 3 11 (20 02 ), aff’d, 10 1 F ed . App x. 3 4 (6 th Cir . 20 04 ). Thi s C ou rt h as juri sd ic ti onto 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
. Rev . Pro c. 20 03 -6 1, s ec. 4 .03 , 20 03 -2 C.B. 2 96 , 29 8, pro vi de s a l is t o f 2
no ne xc lu si ve fact or s tha t the Co m m is si on er m ay

weig h i n m ak in g h is On J anua ry

5, 2 01 2, the Co m

mis si on er i ss ue d No ti ce 2 01 2- 8, 2 01 2- 4 2 I.R.B. 3 09 , ann ou nc in g apro po se d re ve nu e p ro cedur e upd at in g R ev . Pro c. 20 03 -6 1, 2 00 3- 2 C .B. 29 6. Th atpro po se d re ve nu e p ro cedur e, if fin al iz ed , wil l rev is e th e fac to rs th atth e IRS wil l u se to ev al ua te reque st s fo r equi tabl e rel ie f un de r se ct io n 6 01 5( f). InSri ram v. Co m m is si on er, T.C. Mem o. 2 01 2- 91 , sl ip op . at9 n .7, we s ta te d t ha t we wo ul d “ co nt in ue to ap pl y th e fac to rs inRev . Pro c. 20 03 -6 1, 2 00 3- 2 C .B. 29 6, i n v ie w of the factth atth e p ro po se d re ve nu e p ro cedur e is no t fi na l an d b ecau se th e co m m en t p eri odun de r th e n ot ic e o nl y rece nt ly cl os ed .” See al so Yos in sk i v . Comm is si on er, T.C. Mem o. 2 01 2- 19 5 (c on ti nu in g to ap pl y Rev . Pro c. 20 03 -6 1, s up ra); Deih l v . Comm is si on er, T.C. Mem o. 20 12 -1 76 (sa m e).- 8 -

de te rm in at io n re la ti ng to in no cen t s po us e rel ie f, in cl ud in g: m ari ta l s ta tu s, eco no m ic ha rd sh ip , kn owl ed ge or r eas on to kn ow, the no nr eque st in g s po us e’s le ga l o bl ig at io n, s ig ni fic an t b en efi t, co m pl ia nc e wit h i nc om e ta x l aws , abu se , and
m en ta l o r ph y si cal he al th
. W e fi ndtwo fact or s, kno wled ge an d e co no mic hard sh ip , weig h a ga in st rel ie f. As we co nc lu de d s up ra, p et it io ne r ha d re as onto kn ow o f th e un de rs ta te m en t b ecau se sh e si gn edan d h adno ta riz edth e te rm in at io n a ndMr. Szi sz akto ldhe r sh e was si gn in g i t s o h e co ul d g etacce ss to th e fu nd s. We als o fin d t ha t the eco no m ic hard sh ip fact or weig hs ag ai ns t re li ef b ecau se pe ti ti on er fai le d t o s ho w th atsh e wou ldsu ffereco no m ic ha rd sh ip if d en ie d re li ef fro m joi nt
an d s ev eral li ab il it y . 3 Howev er, thr ee fa ct or s wei gh infav orof r el ie f. At th e ti m e o f he r reque st , pe ti ti on er was di vo rcedfro m Mr. Szi sz ak . She de riv edno si gn ifi can t b en efi t fr om us e o f th e fu nd s g iv in g ri se to th e 2 00 8 d efi ci en cy . Furth erm or e, pe ti ti on er h as 4
W e n ot e th atun de r Not ic e 2 01 2- 8, s ec. 4 .03 (2 )(b ), 20 12 -4 I.R.B. at31 3, 3 th e eco no m ic ha rd sh ip fact orsh ou ldbe co ns id eredne ut ral wher e d en y in g re li ef fro m joi ntan d s ev eral li ab il it y wil l n otres ul t i n e co no m ic ha rd sh ip to th e reque st in g s po us e. Res po nd en t ar gu es th e si gn ifi can t b en efi t fa ct oris ne ut ral . Howev er, 4 res po nd en t i s ap pl y in g t he pro po se d re ve nu e p ro cedur e in Not ic e 2 01 2- 8, s up ra. The Co urt, wh enap pl y in g t he fact or s i n R ev . Pro c. 20 03 -6 1, s up ra, h as fou ndth is (co nt in ue d...)- 9 -

co m pl ie d wi th all in co m e ta x l aws forth e ta xabl e y ears fol lo win g h er d iv or ce fr om Mr. Sz is zak
. The rem ai ni ng th ree f

act or s (abu se , leg al ob li ga ti on , andm en ta l o r ph y si cal he al th ) are ne ut ral
. Of th e fac to rs li st edinRev . Pro c. 20 03 -6 1, s ec. 4 .03 , th ree f av orrel ie f, th ree a re n eu tra l, an d t wo wei gh ag ai ns t re li ef. Afte r co ns id eri ng an d wei gh in g a ll th e fac to rs , we fin d i t wo ul d b e in equi tabl e to ho ldpe ti ti on er l iabl e fo r th e 2 00 8 ta x l iabi li ty whi chis att rib ut ab le to Mr. Szi sz ak ’s withd rawal of h is ret ire m en t fund s. Acco rd in gl y , sh e is en ti tl edto rel ie f pu rs ua ntto sec ti on 60 15 (f) fo r 20 08
. To re fle ctth e fo reg oi ng , Deci si on wil l b e en te red fo r pe ti ti on er.

(...co nt inue d) 4 fact or to weig h a ga in strel ie f whe n t he reque st in g s po us e h as no t re cei ve d a si gn ifi can t b en efi t b ey on d n orm al supp ort. Po rte r v. C omm is si on er, 1 32 T.C. 20 3, 21 2- 21 3 (2 00 9) ; s ee al so W il li am so n v . Comm is si on er, T.C. Mem o. 2 01 3- 78
.