T.C. Mem o. 2 01 3- 11 9

UNITED STAT ES TAX COURT

KELLY A. CUTLER, Peti ti on er v . COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No s. 1 68 40 -1 0L, 1 47 1- 11
. Fi le d M ay 6, 2 01 3.

Mi ch ael L. Deam er, fo r pe ti ti on er. In gaC. Plu ci ns ki , forres po nd en t.

MEMORANDUM FINDINGS OF FACT AND OPINION VASQUEZ, Ju dg e: In the se co ns ol id at edcas es , pet it io ne r se ek s o urrev ie w, pu rs ua ntto sec ti on 60 15 (e)( 1) , of r es po nd en t’s d et erm in at io n t ha t s he is no t 1
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 1 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 (co nt in ue d...)- 2 -

[* 2] 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 6 01 5( f) wit h
res pe ctto he r Fed eral in co m e ta x l iabi li ti es for20 02 th ro ug h 2 00 5. Sh e al so see ks
ou r rev ie w, pu rs ua ntto sec ti on 63 30 (d )(1 ), of res po nd en t’s d et erm in at io n t o su st ai n apro po se d l ev y

act io n fo r 20 05 an d, i n c on ne ct io n t he rewi th , all eg es th at
res po nd en t wro ng fu ll y

sei zedfun ds be lo ng in g t o h er ch il dr enan d re qu es ts th atwe or de r res po nd en t t o re tu rnth e fund s. FINDINGS OF FACT 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, the supp le m en ta l s ti pu la ti on of f act s, an d t he acco m

pa nyin g e xh ib it s ar e in co rp or at edhe rei n b y

th is refe ren ce. Pet it io ne r res id edinUtahat t he ti m e sh e fil edth e p et it io n. I. Bac kg ro un d Pet it io ne r an d C urti s Eas to n C ut le r were m arri edon May 22, 1 98 2. Th ey ha d e ig htch il dr ento ge th er o ve r th e co ur se of t he ir n earl y 25 -y ear m arri ag e. Pet it io ne r pr im ari ly w orke d a s a h om em ak er ra is in g a ndcari ng forth e ch il dr en . Mr. Cu tl er g radua te d fr om de nt al sch oo l i n 1 99 4 a ndth e fo ll owi ng y ear f orm ed W il lo w CreekDent al , LLC (W il lo w CreekDent al ). (...co nt inue d) 1 Co urt Ru le s o f Prac ti ce an d P ro cedur e.- 3 -

[* 3] W il lo w CreekDent al ele ct edto be tax edas an S co rp or at io n fo r Fed eral in co m e ta x p ur

po se s. Mr. Cu tl er s erv edas i ts pre si de ntan d was it s s ol e

2 sh areh ol de r. Duri ng th e y ears inis su e Will ow Cr eekDent al op erat edde nt al pr act ic es inSan dy, Utah (S an dy den ta l p ract ic e), an d Am eri canFo rk , Utah (Am eri canFo rk

de nt al pra ct ic e). W il lo w CreekDent al em pl oyed Mr . Cut le r as it s so le de nt is t. It al so em

pl oyed two t o t hr ee d en ta l as si st an ts , an o ffi ce m an ag er fo r 3 each lo cat io n, an d abo okke ep er. Mr. Cu tl er d is li ke d fi na nc ia l t as ks , so m uc h s o tha t h e jus t re fu se d t o d eal with t he de nt al pra ct ic es ’ fin an ces or h is pe rs on al fin an ces . Thattas k fe ll up on pe ti ti on er. Sh e h adco m

pl et edon ly one y ear o f co ll eg e, an d s he ha d n o fo rm al tra in in g i n a cco un ti ng or t ax , bu t s he un de rs to odth atif s he di d n ottak e car e o f th e fin an ces , th e b il ls wou ldbe lef t u np ai d. Sh e u se d Wil lo w CreekDent al ’s ban k
acco un t, t o wh ic h b ot h s he an d M r. Cu tl er h adacce ss , to pa y pe rs on al an d fa m il y ex pe ns es , andsh e as si st edth e b oo kk eep er wi th pa y in g t he de nt al pra ct ic es ’
ex pe ns es . Duri ng th e fo ur -y ear p eri od20 02 -0 5 s he wrot e 2 3 c he ck s drawnon

“ S co rp or at io ns are p as st hr ou gh en ti ti es th atge ne ral ly do n otpa y in co m e 2 ta x. Ra th er, the in co m e an d l os se s o f S co rp or at io ns are p as se d t hr ou gh to th ei r sh areh ol de rs , who m

us t i nc lu de th e in co m e o r lo ss es on th ei r in di vi du al in co m e ta x re turn s.” M ag ui re v . Commis si on er, T.C. Mem o. 2 01 2- 16 0. He work edat t he two lo cat io ns on alt ern at e d ay s o f eac h wee k. 3- 4 -

[* 4] W il lo w CreekDent al ’s ban k a cco un t t ot al in g $ 58 ,63 0.6 8 t o t he IRS i n p art ia l pa ym en t o f Mr. Cu tl er’s an d h er i nd iv idua l i nc om e ta x l iabi li ti es . Becaus e Mr. 4 Cu tl er re fu se d t o d eal with any fin an ci al m at te rs , sh e al so ha nd le d t he pre parat io n of th ei r joi ntin di vi du al in co m e ta x re tu rnan d Wil lo w CreekDent al ’s cor po rat e ta x re turnforeach of t he y ears inis su e. II. Div or ce Pr oc eed in gs On Oct ob er 2 3, 2 00 6, p et it io ne r an d M r. Cu tl er ce as edli vi ng to ge th er. Pet it io ne r at tri bu te s the de cl in e o f th e m arri ag e to Mr. Cu tl er’s p ers on al pro bl em s. On Ap ril 30 , 20 07 , pet it io ne r fi le d fo r an d was gra nt eda di vo rce f ro m Mr. Cu tl er by the Fo urth Ju di ci al Dis tri ctCo urt, Ut ahCo un ty, St at e o f Utah (d iv or ce co urt),
on th e g ro un ds of i rrec on ci labl e d iff eren ces . The d iv or ce co urt awa rd edpe ti ti on er cu st od y of t he ch il dr en , ch il d s up po rt o f $2 ,17 9 p er m on th , ali m on y of $ 1 p er 5 y ear, the San dy den ta l p ract ic e an d t he Am eri canFo rkde nt al pra ct ic e, th e m ari ta l ho us e, two parcel s o f land , an i ns ur an ce p ol ic y , andpe rs on al pro pe rty.

The p aym en ts to th e IRS were i ns uf fic ie ntto co ve r th e ta x l iabi li ti es for 4 an y of t he y ears inis su e. Fiv e o f pe ti ti on er’s ch il dr enwere m in or s atth e ti m e. 5- 5 -

[* 5] III. The Afte rm ath o f th e Div or ce Mr. Cu tl er h adqu itwork in g a t the de nt al pra ct ic es an d h adm ov edto hi s pa ren ts ’ ho us e in Cal ifo rn ia . He fail edto m ak e th e co urt-o rd eredch il d s up po rt pa ym en ts . He leftpe ti ti on er t o fe ndforhe rs el f an d t he ir f iv e m in or ch il dr en . Pet it io ne r so ldth e Am eri canFo rkde nt al pra ct ic e an d t he two pa rcel s o f la ndto pa y off th e p ract ic e’s ou ts tand in g l oa ns an d l ab or at ory bi ll s, t o g etth e m ortg ag e lo anon he r ho us e o utof f or ecl os ur e, an d t o p ay

pe rs on al an d l iv in g e xp en se s. 6 Pet it io ne r ex pe rie nc edsev ere f in an ci al di ffi cu lty

aft er the di vo rce. Sh e h el d
on to th e San dy den ta l p ract ic e b utstru gg le d t o k eep itafl oa t. Nei th er s he no r th e rece ntde nt al sch oo l g radua te sh e h ire d i n p la ce o f Mr. Cu tl er kne w ho w to run a de nt al pra ct ic e. Her d iff

ic ul ti es at wo rkwere co m po un de d b y

ha vi ng to supp ort fiv e m in orch il dr enat h om e b y he rs el f. She accu m

ul at edap pr ox im at el y

$3 0,0 00 in m ed ic al bi ll s fo r th e car e o f th e ch il dr en . She to okou t a s eco ndm ortg ag e o n he r ho us e fo r $4 0,0 00 an d turne d t o h er ch ur chforfin an ci al ass is tanc e. 7

The Am eri canFo rkde nt al pra ct ic e was lo si ng m on ey at t he ti m e. 6 The m on th ly paym en t o n t he sec on d m ortg ag e was $4 40
. 7- 6 -

[* 6] Thro ug h h ardworkan d d ed ic at io n, p et it io ne r m ad e g reatstrid es to ward im pr ov in g h er fi na nc ia l s itua ti on . W ith t he he lp of aco ns ul tant , sh e le arn edho w 8 to run th e San dy den ta l p ract ic e. By th e en d o f 20 10 th e p ract ic e was ge ne rat in g en ou ghrev enue so th atpe ti ti on er co ul d s up po rt h ers el f an d h er ch il dr enwitho ut fin an ci al ass is tanc e fro m

he r ch ur ch . On Ju ly 8, 20 11 , sh e m arri edJo ao Bu en o. IV. Pet it io ne r’s Cu rren t Fi na nc ia l Si tu at io n As o f Apr il 17 , 20 12 , th e d at e o f tr ia l, p et it io ne r was rece iv in g am on th ly
sa lary of $ 1,0 46 an d m on th ly dis tri bu ti on s o f pr of itav erag in g app ro xi m at el y $5 ,00 0 fr om

W il lo w CreekDent al . This , acco rd in g t o p et it io ne r, was e no ug h t o ge t b y . Mr. Bu en o was pa y in g s om e h ou se ho ldex pe ns es , in cl ud in g u ti li ti es an d th e se co ndm ortg ag e. Howev er, p et it io ne r was no t wi th ou t fi na nc ia l wo es . After
anun su cces sf

ul att em ptat wo rk in g o uta lo anm od ifi cat io n wi th he r ba nk , th e fi rs t
m ortg ag e lo anon pe ti ti on er’s h ou se was o nc e ag ai n i n fo recl os ur e. Sh e h ad ap pr ox im at el y

$6 ,00 0 o f m ed ic al bi ll s s ti ll ou ts tand in g. Mr . Cut le r co nt in ue d t o sh irkhi s ch il d s up po rt o bl ig at io ns an d o wedpe ti ti on er ap pr ox im at el y $9 5,0 00 in pa st -due ch il d s up po rt.
Pet it io ne r’s co m

pl ianc e wit h t he Fed eral in co m e ta x l aws als o i m pr ov ed 8 so m ewh at , bu t s he was s ti ll lat e in fil in g h er t ax returns for20 06 , 20 07 , 20 08 , and 20 10 . As of

th e d at e o f tr ia l, o th er tha n fo r th e y ears at i ss ue sh e h adan ou ts tand in g t ax li ab il ity

on ly for 2 00 7.- 7 -

[* 7] V. Reque stforInn oc en t Sp ou se Rel ie f On Se pt em

be r 25 , 20 09 , th e IRS rece iv edfro m pe ti ti on er Fo rm

88 57 , Reque stfor

Inn oc en t Sp ou se Rel ie f, inwhi chsh e reque st edrel ie f fro m joi ntan d
se ve ral li ab il ity

for20 02 th ro ug h 2 00 5. Sh e li st edhe r m on th ly inc om e as $8 ,04 9
an d h er m on th ly exp en se s as $8 ,64 5 o n t he Fo rm 88 57 . On Nov em

be r 5, 2 00 9, Mr. Cu tl er s ub m it te d t o t he IRS a c om pl et edFo rm

12 50 8, Qu es ti on na ire forNon
Reque st in g S po us e, ob

jecti ng to pe ti ti on er’s reque st . The IRS d et erm in edon th e m eri ts th atpe ti ti on er was no t en ti tl edto rel ie f fo r 20 05 , bu t i t h el d 2 00 2 t hr ou gh 20 04 insu sp en se pe nd in g ade te rm in at io n reg ard in g t he ti m el in es s o f th e reque st . Pet it io ne r ap pe al edth e 2 00 5 9 de te rm in at io n t o t he IRS Offi ce o f App eal s (Ap pe al s) . On Ju ly 8, 20 10 , th e IRS
m ai le d p et it io ne r a fi na l Ap pe al s d et erm in at io n l et te r in whi chitde te rm in edth at pe ti ti on er was no t en ti tl edto rel ie f fo r 20 05 . Sub se qu en tl y , th e IRS reev al ua te d pe ti ti on er’s reque stforrel ie f fo r 20 02 th ro ug h 2 00 4 o n the m eri ts , andon Decem be r 17 , 20 10 , m ai le d h er a fi na l d et erm in at io n l et te r de nyin g h er re qu es t fo r rel ie f.

See i nf

ra n ot e 1 3. 9- 8 -

[* 8] VI. Reque stfora Co ll ect io n Du e Pro ces s Hea rin g On Fe brua ry

17 , 20 07 , th e IRS m ai le d p et it io ne r Lett er 1 05 8, No ti ce o f In te ntto Levy andNot ic e o f You r Ri gh t t o aHeari ng (no ti ce o f in te ntto lev y ), with re sp ectto he r unpa idFed eral in co m e ta x l iabi li ti es for 20 02 th ro ug h 2 00 4. Pet it io ne r di d n otreque sta co ll ect io n due pro ces s (C DP) h eari ng . On Sep te m be r 5, 2 00 9, the IRS i ss ue d alev y to Ban k o f Am eri canFo rkto co ll ectth e unp ai d Fed eral in co m e ta x l iabi li ti es for20 02 th ro ug h 2 00 4. Ban k o f Am eri canFo rk 1 0
rem it te d $ 3,8 50 .24 (le vi edfun ds ) to th e IRS inres po ns e to th e le vy, whi chwas ap pl ie d t o p et it io ne r’s in co m e ta x l iabi li ty for 2 00 2. 1 1 Als o o n S ep te m

be r 5, 2 00 9, re sp on de ntm ai le d p et it io ne r a n ot ic e o f in te nt to lev y with re sp ectto he r unpa idFed eral in co m e ta x l iabi li ty for 2 00 5. On Sep te m be r 21 , 20 09 , pet it io ne r fi le d F orm 12 15 3, Re qu es t fo r a Co ll ect io n Du e Pro ces s o r Equ iv al en t Hea rin g (C DP he ari ng reque st ), inwhi chsh e reque st eda CDP h eari ng for20 02 th ro ug h 2 00 5. Sh e rai se d t wo i ss ue s i n h er CDP h eari ng reque st : (1 ) sh e al le ge d t ha t the lev ie d fu nd s b el on ge d t o h er ch il dr enan d Mr. Cu tl er was li st edas the tax pa y er o n t he lev y . 1 0 The l ev ie d fu nd s ca m e fro m fiv e se pa rat e b an k a cco un ts . Each a cco un t 1 1 ha d p et it io ne r’s an d M r. Cu tl er’s n am es on itan d t he na m e o f on e o f th ei r ch il dr en . The ch il dr enwere al l m in or s atth e ti m e th e acc ou nt s wer e se t up. We fin d t ha t the fun ds inth e acc ount s b el on ge d e xc lu si ve ly to the ch il dr en . See i nf ra pp . 25 -2 6.- 9 -

[* 9] reque st edth ei r return; an d (2 ) sh e reque st edin no cen t s po us e rel ie f as a de fen se to th e p ro po se d l ev y act io n fo r 20 05 . Res po nd en t d et erm in edth athe r CDP h eari ng reque stto ch al le ng e th e le vy for 2 00 2 thr ou gh 20 04 was u nt im el y an d t ha t s he was n oten ti tl edto in no cen t s po us e rel ie f fo r 20 05 . On Ju ly 8, 20 10 , res po nd en t m ai le d p et it io ne r a No ti ce o f Det erm in at io n C on cern in g C ol le ct io n Acti on s( s) Und er Se ct io n 6 32 0 a nd/o r 63 30 su st ai ni ng th e p ro po se d l ev y act io n fo r 20 05
. OPINION I. In no cen t Sp ou se Rel ie f Inge ne ral , a sp ou se who fil es a joi ntFed eral in co m e ta x re tu rnis joi nt ly
an d s ev eral ly liab le forth e en ti re t ax li ab il ity . Sec. 6 01 3( d) (3 ). Howev er, a sp ou se m ay

be rel ie ve d fr om

joi ntan d s ev eral li ab il ity un de r se ct io n 6 01 5( f) i f: (1 ) 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 ldth e sp ou se li ab le foran y unpa idtax ; an d (2 ) rel ie f is no t av ai labl e to th e sp ou se un de r se ct io n 6 01 5( b) or ( c). The Co m m is si on er h as publ is he d re ve nu e 1 2 pr oc edur es li st in g t he fact or s the Co m m is si on er n orm al ly con si de rs inde te rm in in g whe th er s ect io n 6 01 5( f) rel ie f sh ou ldbe gra nt ed . See Re v. Pr oc . 20 03 -6 1, 2 00 3- 2 The p art ie s ag ree t ha t p et it io ne r is no t el ig ib le forrel ie f un de r se c. 1 2 60 15 (b ) or(c).- 10 -

[* 10 ] C.B. 2 96 , supe rs ed in g R ev . Pro c. 20 00 -1 5, 2 00 0- 1 C .B. 44 7. We con si de r th es e fac to rs inth e li gh t o f th e at te nd an t fa ct s an d c irc um st an ces , bu t we ar e n ot bo un d b y th em . See Sri ram

v. Co m m is si on er, T.C. Mem o. 2 01 2- 91
. Inde te rm in in g wh ethe r pe ti ti on er i s en ti tl edto sec ti on60 15 (f) re li ef we 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. C ommis si on er, 1 32 T.C. 20 3 (2 00 9) (Po rte r II); Po rte r v. C omm is si on er, 13 0 T.C. 1 15 (20 08 ) (Po rte r I). Pet it io ne r be ars th e b ur de n o f pr ov in g t ha t s he is
en ti tl edto rel ie f. See Ru le 14 2( a); Altv. Co m m is si on er, 1 19 T.C. 30 6, 3 11 (2 00 2) , aff’d, 1 01 Fed . App x. 3 4 (6 th Cir . 20 04 ). A. Thre sh ol d C on di ti on s fo r Gran ti ng Rel ie f Inord er fo r th e Co m

mis si on er t o d et erm in e th ata ta xp ay er i s el ig ib le for
se ct io n 6 01 5( f) rel ie f, th e reque st in g s po us e m us t s at is fy

th e fo ll owi ng th res ho ld
co nd it io ns : (1 ) sh e fi le d ajoi ntreturn fo r th e ta xabl e y ear f orwhi chsh e se ek s rel ie f; ( 2) rel ie f is no t av ai labl e to he r un de r se ct io n 6 01 5( b) or ( c); (3) no ass et s were tran sf

erre d b etweenth e sp ou se s as part o f a fraudul en t s ch em e b y th e sp ou se s; (4) th e n on reque st in g s po us e d idno t tran sf er d is qu al ifi edass et s t o h er; (5 ) sh e d idno t fi le or f

ai l t o fi le th e returns with fr au du le ntin te nt ; an d (6 ) with
enum erat edex cep ti on s, the in co m e ta x l iabi li ty from whi chsh e se ek s re li ef i s- 11 -

[* 11 ] att rib ut ab le to anit em of t he no nr eque st in g s po us e. Rev . Pro c. 20 03 -6 1, 1 3
se c. 4.0 1, 2 00 3- 2 C .B. at 2 97 -2 98 . Res po nd en t h as co nc ed edth atpe ti ti on er h as
m etall of t he th res ho ldco nd it io ns . 1 4

Rev . Pro c. 20 03 -6 1, s ec. 4 .01 , 20 03 -2 C.B. 2 96 , 29 7- 29 8, al so li st s a 1 3 se ve nt h t hr es ho ldco nd it io n: “ The reque st in g s po us e ap pl ie s fo r rel ie f no lat er th antwo y ears aft er the da te of t he Serv ic e’s fi rs t co ll ect io n a ct iv ity aft er J ul y

22 , 19 98 , with re sp ectto th e reque st in g s po us e.” InLant z v . Comm is si on er, 1 32 T.C. 13 1 (2 00 9) , rev ’d, 60 7 F .3d47 9 (7 th Cir . 20 10 ), we he ldth atth e two -y ear de ad li ne im

po se d b y sec . 1.6 01 5- 5( b) (1 ), In co m e Tax Reg s., i s an in va li d in te rp ret at io n o f se c. 60 15 (f). Aft er the U.S. Cou rt o f App eal s fo r th e Sev en th Ci rcu itrev ers edLant z, we reco ns id eredth e m at te r bu t d idno t ch an ge ou r po si ti on . See Hal l v . Commis si on er, 1 35 T.C. 37 4 (2 01 0) . In No ti ce 2 01 1- 70 , 20 11 -3 2 I.R .B. 13 5, the IRS ch an ge d i ts po si ti onan d wi ll no w con si de r reque st s fo r equi tabl e rel ie f un de r se c. 60 15 (f) i f th e p eri odof l im it at io n o n c ol le ct io n o f ta x p ro vi de d b y

sec . 65 02 or t he pe rio d o f li m it at io n o n c red it s o r refu nd s p ro vi de d in sec . 65 11 rem ai ns op enforth e ta x years a t i ss ue . On b rie f res po nd en t ar gu es th atha lf o f th e in co m e fro m W il lo w Creek 1 4 Den ta l fo r 20 02 th ro ug h 2 00 5 s ho ul d b e at tri bu te d t o p et it io ne r an d t ha t p et it io ne r th eref or e d oe s n otsat is fy

th e th res ho ldco nd it io ns with re sp ectto th atin co m e. Howev er, the pa rti es ha ve st ip ul at edth atpe ti ti on er h as m etth e th res ho ld co nd it io ns forrel ie f. Sti pu lati on s ar e g en eral ly treat edas “ co nc lu si ve adm is si on s” . Rul e 9 1( e). W e m ay di sr eg ardst ip ul at io ns wher e jus ti ce s o re qu ire s if t he ev id en ce co nt rary to the st ip ul at io n i s s ub st an ti al or t he st ip ul at io n i s cl earl y co nt rary to the fact s d is cl os edby the reco rd . Cal- Mai ne Fo od s, In c. v. Co m m is si on er, 9 3 T.C. 1 81 , 19 5 (1 98 9) ; s ee al so Loft in & W oo dwa rd , Inc . v. Uni te d S tate s, 5 77 F.2d12 06 , 12 32 (5t h C ir. 1 97 8) ; J as io no wsk i v . Comm is si on er, 66 T.C. 31 2, 3 17 -3 18 (19 76 ). Suc h i s n otth e cas e h ere. W e fi ndth atth e st ip ul at io n i s s up po rte d b y ev id en ce i n t he reco rdsh owi ng th atdu rin g t he y ears in is su e Mr. Cu tl er was th e so le de nt is t i n t he Am eri canFo rkde nt al pra ct ic e an d t he San dy den ta l p ract ic e an d t he so le sh areh ol de r of W il lo w CreekDent al
.- 12 -

[* 12 ] B. Ci rcu m st an ces Und er Whic h R el ie f Is Ordi naril y Gran te d Whe n t he th res ho ldco nd it io ns ha ve be enm et , th e Co m mis si on er wi ll
or di na ril y gra ntrel ie f with re sp ectto anun de rp aym en t o f ta x i f th e reque st in g sp ou se m eet s the requi rem en ts setforth un de r Rev . Pro c. 20 03 -6 1, s ec. 4 .02 , 20 03
- 2 C .B. at 2 98 . To qu al ify for re li ef u nd er Re v. Pr oc . 20 03 -6 1, s ec. 4 .02 , all of t he fo ll owi ng ele m en ts m

us t b e sa ti sf

ie d: (1) on th e d at e o f th e reque stforrel ie f th e reque st in g s po us e is no lo ng er m arri edto , or i s l eg al ly sep arat edfro m , th e no nr eque st in g s po us e, orha s n otbe ena m em be r of th e sa m e h ou se ho ldas the
no nr eque st in g s po us e atan y ti m e dur in g the 12 -m on th pe rio d e nd in g o n t he da te of th e reque stfor

rel ie f; ( 2) on th e d at e th e reque st in g s po us e si gn edth e return s he ha d n o kno wled ge or r eas on to kn ow tha t the no nr eque st in g s po us e wou ldno t p ay th e in co m e ta x l iabi li ty; an d (3 ) th e reque st in g s po us e wil l s uf fer e co no m ic 1 5 ha rd sh ip if re li ef i s n otgra nt ed
.

In m ak in g t he de te rm in at io n wh ethe r th e reque st in g s po us e h adreas on to 1 5 kn ow, co ns id erat io n i s g iv ento , am on g o th er thi ng s: (1) th e reque st in g s po us e’s le ve l o f educ at io n; (2) th e reque st in g s po us e’s de gr ee o f in vo lv em en t i n the act iv ity ge ne rat in g the in co m e ta x l iabi li ty; (3) th e reque st in g s po us e’s in vo lv em en t i n b us in es s an d h ou se ho ldfin an ci al m at te rs ; (4 ) th e reque st in g sp ou se ’s bu si ne ss or f

in an ci al expe rti se ; an d (5 ) an y lav is h o r un us ua l ex pe nd itur es co m

pa redwith p as t s pe nd in g l ev el s. Re v. Pr oc . 20 03 -6 1, s ec. 4.0 3( 2) (a)( ii i)( C), 2 00 3- 2 C .B. at 2 98
.- 13 -

[* 13 ] Pet it io ne r cre di bl y

tes ti fie d t ha t M r. Cu tl er fo un d fi na nc ia l m at te rs unpl eas an t an d ju strefu se d t o d eal with the m . She furth er cr ed ib ly test ifi edth at sh e “ kn ew pe rfec tl y

well ” th atsh e h adto tak e car e o f al l the fin an ci al m at te rs he rs el f, in cl ud in g p rep ari ng th e ta x re tu rn s, o r th ey “wou ldn’t b e d on e”. Acco rd in g t o p et it io ne r, Mr. Cu tl er co m pl ai ne d t o h er tha t the y

owedtax to th e IRS. Onth e b as is of t he for eg oi ng , we fin d t ha t p et it io ne r kn ew orha d re as on to kn ow tha t M r. Cu tl er wo ul d n otpa y th e ta x l iabi li ti es for20 02 th ro ug h 2 00 5. The refo re, s he do es no t qua li fy forrel ie f un de r th e sa fe h arb orof R ev . Pro c. 20 03
- 61 , sec . 4.0 2. C. Fact or s Us edTo Det erm in e Wheth er Re li ef Will Be Gran te d Whe re, as he re, a re qu es ti ng sp ou se m eet s the th res ho ldco nd it io ns bu t fa il s to qu al ify for re li ef u nd er Re v. Pr oc . 20 03 -6 1, s ec. 4 .02 , a de te rm in at io n t o g ran t rel ie f m ay

ne ve rth el es s b e m ad e und er the cri te riasetforth inRev . Pro c. 20 03 -6 1,
se c. 4.0 3, 2 00 3- 2 C .B. at 2 98 -2 99 . Rev . Pro c. 20 03 -6 1, s ec. 4 .03 , pro vi de s a no ne xc lu si ve li stof f

act or s the Co m

m is si on er wi ll co ns id er i n m ak in g t ha t de te rm in at io n: (1) whet he r th e reque st in g s po us e is sep arat edor d iv or cedfro m th e n on reque st in g s po us e (m ari ta l s ta tu s fa ct or ); ( 2) whethe r th e reque st in g s po us e wou ldsu ffereco no m ic ha rd sh ip if n otgra nt edrel ie f (ec on om ic ha rd sh ip fact or ); (3 ) whe th er, atth e ti m e h e o r sh e si gn edth e joi ntreturn, the reque st in g s po us e- 14 -

[* 14 ] kn ew orha d re as on to kn ow tha t the no nr eque st in g s po us e wou ldno t p ay th e in co m e ta x l iabi li ty (kn owl ed ge fact or ); ( 4) whet he r th e n on reque st in g s po us e ha s a l eg al ob li ga ti on to pa y th e o ut st an di ng tax li ab il ity pu rs ua ntto a di vo rce de cree or a gr eem en t (l eg al ob li ga ti on fact or ); ( 5) whet he r th e reque st in g s po us e rece iv eda si gn ifi can t b en efi t fr om th e unp ai d i nc om e ta x l iabi li ty (sig ni fic an t be ne fitfact or ); a nd(6) whet he r th e reque st in g s po us e h as m ad e a g oo d- fai theffo rt to co m pl y with t he Fed eral in co m e ta x l aws forth e ta xabl e y ears fol lo win g t he ta xabl e y ear o r y ears to whi chth e reque stforrel ie f rel at es (co m pl ianc e fac to r). The Co m m is si on er co ns id ers two ot he r fac to rs th at , if p res en t i n acas e, wil l weig h i n fa vo r of

gra nt in g re li ef: (1) whet he r th e n on reque st in g s po us e ab us edth e reque st in g s po us e (ab us e fac to r); an d (2 ) whe th er the 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 h e o r sh e si gn edth e return o r atth e ti m e he or s he reque st edrel ie f (m en ta l o r ph y si cal he al th fact or ). Id. s ec. 4 .03 (2 )(b ), 20 03 -2 C.B. at29 9. Th e ab se nc e o f ei th er fa ct orwil l n otweig h a ga in stgra nt in g rel ie f. Id. Inm ak in g o urde te rm in at io n u nd er s ect io n 6 01 5( f), we m ay co ns id er the fact or s s etforth inRev . Pro c. 20 03 -6 1, s ec. 4 .03 , andan y ot he r rel ev an t fa ct or s. No s in gl e fac to r is de te rm in at iv e, an d a ll fact or s s ha ll be co ns id eredan d wei gh ed- 15 -

[* 15 ] ap pr op ria te ly. See Pu ll in s v . Comm is si on er, 1 36 T.C. 43 2, 4 48 (20 11 ); Po rte r II, 1 32 T.C. at 2 14 ; Hai gh v. Co m m is si on er, T.C. Mem o. 2 00 9- 14 0. 1. Mar it al Sta tu s Co ns id erat io n i s g iv ento whet he r th e reque st in g s po us e is sep arat ed (wh ethe r le ga ll y

sep arat edor l iv in g apa rt) or d iv or cedfro m th e n on reque st in g sp ou se . Rev . Pro c. 20 03 -6 1, s ec. 4 .03 (2 )(a) (i) , 20 03 -2 C.B. at29 8. OnOcto be r 23 , 20 06 , pet it io ne r an d M r. Cu tl er ce as edli vi ng to ge th er, an d o n Ap ril 30 , 20 07 , th ey were d iv or ced . Peti ti on er fi le d h er reque stforrel ie f on Sep te m be r 25 , 20 09
. Acco rd in gl y , th e m ari ta l s ta tu s fa ct orweig hs infav orof r el ie f.

2. Eco no m ic Hard sh ip Pet it io ne r be ars th e b ur de n o f pr ov in g t ha t s he wil l s uf fer e co no m ic ha rd sh ip if we d o n otgra nthe r rel ie f fro m joi ntan d s ev eral li ab il ity . See Ru le 14 2( a); Altv. Co m

m is si on er, 1 19 T.C. at 3 11 . A requ es ti ng sp ou se su ffer s eco no m ic ha rd sh ip if p ay in g t he tax li ab il ity wou ldpre ve nthi m

or h er fro m pa y in g h is or h er re as on ab le ba si c li vi ng ex pe ns es . Ali ot o v . Comm is si on er, 1 6 In d et erm in in g areas on ab le am ountforba si c li vi ng ex pe ns es , th e 1 6 Co m m is si on er s ha ll co ns id er i nf orm at io n p ro vi de d b y

th e ta xp ay er, i nc lu di ng : (1 ) th e ta xp ay er’s ag e, em

pl oym en t s ta tu s an d h is to ry , abi li ty to ea rn , nu m be r of de pe nd en ts , andst atus as ade pe nd en t; (2) th e am ou ntreas on ab ly neces sa ry for fo od , clo th in g, h ou si ng , ut il it ie s, m ed ic al ex pe ns es , trans po rta ti on , chi ldsupp ort, an d o th er n eces si ti es ; (3 ) th e co stof l iv in g i n t he ge og rap hi cal areainwhi chth e (co nt in ue d...)- 16 -

[* 16 ] T.C. Mem o. 2 00 8- 18 5; Bu tn er v . Commis si on er, T.C. Mem o. 2 00 7- 13 6; sec . 30 1.6 34 3- 1( b) (4 )(i ), Pro ced . & Adm in . Reg s.; Rev . Pro c. 20 03 -6 1, s ec. 4 .02 (1 )(c) , 4.0 3( 2) (a)( ii ), 20 03 -2 C.B. at29 8. A h y po th et ic al ha rd sh ip is in su ffi ci en t t o jus ti fy rel ie f. Pul li ns v. Co m

m is si on er, 1 36 T.C. at 4 46 . Peti ti on er m us t de m on st rat e th atim

po si ng joi ntan d s ev eral li ab il ity is “ ‘ine qu it ab le inpre se nt te rm s’, VonKali no wsk i v . Comm is si on er, T.C. Mem o. 2 00 1- 21 , andpo se s a pr es en t ec on om ic ha rd sh ip .” See i d. We hav e “ co ns is te nt ly loo ke d b ey on d the ta xabl e y ear a t i ss ue to ap pl y subs ect io n (f

)”, Hal l v . Comm is si on er, 1 35 T.C. 37 4, 38 0 (2 01 0) , andwe ev al ua te pe ti ti on er’s fi na nc ia l s itua ti on an d p ro sp ect s as of t he ti m e o f tr ia l, s ee Pu ll in s v . Comm is si on er, 1 36 T.C. at 4 46 -4 47
. Pet it io ne r arg ue s tha t h er “ eco no mic hard sh ip inth is m at te r is subs tant ia l.” And , witho utqu es ti on , sh e fac edsubs tant ia l ec on om ic ha rd sh ip fol lo win g h er di vo rce. Th e fi rs t m ortg ag e lo anon he r ho us e was infor ecl os ur e, th e San dy de nt al pra ct ic e was on th e b rin k o f co ll ap se , andsh e h adto tu rnto he r chur chfor fin an ci al ass is tanc e. W ith h ardworkan d d ed ic at io n, s he pe rs ev eredth ro ug h t hi s (...co nt in ue d) 1 6 ta xp ay er l iv es ; (4 ) th e am ou ntof p ro pe rty avai labl e to pa y th e ta xp ay er’s ex pe ns es ; (5 ) an y

ex tra or di na ry

ex pe ns es , in cl ud in g s pe ci al educ at io n e xp en se s; an d (6 ) any

ot he r fac to r th atth e ta xp ay er cl ai m s b ears on eco no m ic ha rd sh ip an d br in gs to th e Co m

m is si on er’s at te nt io n. Se c. 30 1.6 34 3- 1( b) (4 )(i i), Pr oc ed . & Adm in . Reg s.- 17 -

[* 17 ] un us ua ll y

rou gh ti m e in he r li fe. Howe ve r, sh e rem ai ne d o n s ha ky fin an ci al gr ou nd
. On h er Fo rm

88 57 pe ti ti on er re po rte d m on th ly inc om e o f $8 ,04 9 a nd
m on th ly exp en se s o f $8 ,64 5. We fin d t ha t the ex pe ns es , whi chin cl ud edth e
m ortg ag e, ut il it ie s, fo od , clo th in g, i ns ur an ce, ch il d c are, an d t ran sp orta ti on , were al l re as on ab le ba si c li vi ng ex pe ns es forpe ti ti on er an d h er ch il dr en . Peti ti on er te st ifi edth atas o f th e d at e o f tr ia l, s he rece iv eda m on th ly sala ry of $ 1,0 46 an d
m on th ly dis tri bu ti on s o f pr of itfro m W il lo w CreekDent al of app ro xi m at el y $5 ,00 0, a t ot al of $ 6,0 46 pe r m on th . This rep res en te d ade crea se of $ 2,0 03 pe r
m on th fro m

th e am ou ntsh e rep orte d o n F orm 88 57 . She di d n otpro vi de an acco un ti ng of h er ex pe ns es as o f th e d at e o f tr ia l, b utsh e d idtes ti fy th atMr. Bu en o h el pe d p ay

so m e o f th e h ou se ho ldex pe ns es . 1 7 Pet it io ne r te st ifi edth atdu rin g t he fir stqu art er o f 20 12 sh e was m ak in g en ou ghm on ey

fro m th e San dy den ta l p ract ic e “ to ge t b y ”. Neve rth el es s, h er st ream of i nc om e fro m

th e p ract ic e was an yth in g b utcert ai n. Aft er a fa il edlo an
m od ifi cat io n a tt em

pt , th e fi rs t m ortg ag e lo anon he r ho us e was on ce ag ai n i n fo recl os ur e. Sh e st il l h ad$6 ,00 0 o f unpa idm ed ic al bi ll s. An d t he fin an ci al
Acco rd in g t o p et it io ne r, Mr. Bu en o p ai d t he ut il it ie s ($ 62 6 p er m on th as 1 7 rep orte d o n F orm

88 57 ) an d the sec on d m ortg ag e ($ 44 0 p er m on th ).- 18 -

[* 18 ] res po ns ib il ity

of r ai si ng he r m in orch il dr enres te d upo n h er s ho ul de rs , as M r. Cu tl er co nt in ue d t o s hi rkhi s ch il d s up po rt o bl ig at io ns . On th e b as is of t he fo reg oi ng , we fin d t ha t p et it io ne r wou ldhave di ffi cu lty inpa y in g h er re as on ab le ba si c li vi ng ex pe ns es if we d o n otgra nthe r rel ie f fro m joi ntan d s ev eral li ab il ity . Thu s, the eco no m ic ha rd sh ip fact orweig hs inhe r fav or . 1 8

3. Kno wled ge Fo r th e rea so ns pre vi ou sl y di sc us se d, p et it io ne r kn ew orha d re as on to kn ow th atMr. Cu tl er wo ul d n otpa y th e ta x l iabi li ti es forth e y ears inis su e. See s up ra p . 13 . Accor di ng ly, th e kno wled ge fact orweig hs ag ai ns t re li ef.

Pet it io ne r an d re sp on de ntbo th tak e th e p os it io n o n b rie f th atth e 1 8 ap pr op ria te da te to ev al ua te eco no m ic ha rd sh ip is th e d at e o f pe ti ti on er’s reque st fo r in no cen t s po us e rel ie f (i .e., Sep te m be r 25 , 20 09 ) an d n otth e d at e o f tr ia l (i .e., Apr il 17 , 20 12 ). In P ul li ns v. Co m m is si on er, 1 36 T.C. 43 2, 4 46 -4 47 (20 11 ), we st at ed : “ Whe n e va lu at in g e co no m ic ha rd sh ip , th e Offi ce o f App eal s n eces sa ril y vi ews th e reque st in g s po us e’s fi na nc ia l s itua ti on as o f th e h eari ng da te ; b utwe pr op erl y co ns id er the ev id en ce p res en te d a t the de no vo tri al , see Po rte r I, an d we co ns eque nt ly eval ua te he r fi na nc ia l s itua ti onan d p ro sp ect s as of t ha t t im e”. Non ethe le ss , ass um in g a rg ue nd o t ha t we ev al ua te d p et it io ne r’s fin an ci al si tu at io n as of t he da te of h er re qu es t fo r in no cen t s po us e rel ie f, we fin d, fo r m an y of t he sa m e rea so ns , th atsh e wou ldsu ffereco no m ic ha rd sh ip if we d en ie d h er re li ef. Mr. Cu tl er was no t p ay in g c hi ldsupp ort; pe ti ti on er was rai si ng he r m in orch il dr en on he r own ; p et it io ne r’s ex pe ns es ex ceed edhe r in co m e b y $5 96 pe r m on th ; an d pe ti ti on er’s ab il ity

to co nt in ue supp orti ng he rs el f an d h er ch il dr enfro m th e San dy de nt al pra ct ic e was un cert ai n.- 19 -

[* 19 ] 4. Leg al Obl ig at io n If the 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 ie s p ur su an t t o adi vo rce d ecre e o r ag reem en t, thi s fa ct orweig hs infav orof rel ie f un le ss “ th e reque st in g s po us e kne w or h adreas on to kn ow, wh enen te rin g in to th e d iv or ce d ecre e o r ag reem en t, tha t the no nr eque st in g s po us e wou ldno t p ay th e in co m e ta x l iabi li ty.” Rev. Pro c. 20 03 -6 1, s ec. 4 .03 (2 )(a) (iv ). Whe re the di vo rce d ecre e is si le nt , th is fact oris ne ut ral . See Drayer v. Co m m is si on er, T.C. Mem o. 2 01 0- 25 7; Sch ul tz v. Co m m is si on er, T.C. Mem o. 2 01 0- 23 3. Here , th e di vo rce d ecre e d idno t co nt ai n any pro vi si on reg ard in g p aym en t o f th e Fed eral in co m e ta x l iabi li ti es . There fo re, thi s fa ct oris ne ut ral
.

5. Si gn ifi can t Be ne fit Thi s fa ct orweig hs ag ai ns t the reque st in g s po us e if sh e rec ei ve d a si gn ifi can t b en efi t (b ey on d n orm al supp ort) f ro m th e unp ai d t ax li ab il it ie s. Re v. Pro c. 20 03 -6 1, s ec. 4 .03 (a)( v) . “ A si gn ifi can t b en efi t i s an y be ne fitinex ces s o f
no rm al supp ort.” Se c. 1.6 01 5- 2( d) , Inc om e Tax Reg s. A si gn ifi can t b en efi t m ay be di rector i nd ire ct . Id. “Norm al ” supp ort i s m eas ur edby the pa rti es ’ ci rcu m st an ces . Esta te of Kro ckv. Co m m is si on er, 9 3 T.C. 6 72 , 67 8 (1 98 9)
. Evi de nc e o f a s ig ni fic an t b en efi t “ m ay co ns is t o f tr an sf

ers of p ro pe rty or ri gh ts to- 20 -

[* 20 ] pro pe rty, inc lu di ng tra ns fers th atm ay be rece iv edsev eral y ears ” la te r. Sec. 1.6 01 5- 2( d) , Inc om e Tax Reg s. Res po nd en t ar gu es th atpe ti ti on er rec ei ve d asi gn ifi can t b en efi t fr om th e unpa idtax li ab il it ie s b ecau se sh e rec ei ve d i n t he di vo rce t he two de nt al pra ct ic es , th e m ari ta l h ou se , andth e two parcel s o f la nd . W e d is ag ree. Th e Am eri canFo rk de nt al pra ct ic e was lo si ng m on ey at t he ti m e p et it io ne r rec ei ve d i t. Pet it io ne r us ed pa rt o f th e p ro ceed s fr om th e sa le of t he Am eri canFo rkde nt al pra ct ic e to pa y off th e p ract ic e’s ou ts tand in g d eb ts an d l ab or at ory bi ll s. Sh e u se d the rem ai nd er o f th e p ro ceed s, al on g wi th th e p ro ceed s fr om th e sa le of t he two pa rcel s o f la nd , for
no rm al li vi ng ex pe ns es . The Sand y de nt al pra ct ic e wou ldli ke ly hav e lo stm uc h o f it s v al ue when Mr. Cu tl er, i ts so le de nt is t, qui t the pra ct ic e an d m ov edto Cal ifo rn ia . In fa ct , pet it io ne r in it ia ll y stru gg le d t o e ve n k eep th e San dy den ta l pr act ic e afl oa t. On ly thro ug h h ardworkan d d ed ic at io n was sh e ab le to tu rnit
aro un d. W e fi ndth atth e as se ts pe ti ti on er rec ei ve d i n t he di vo rce d idno t am ou ntto a si gn ifi can t b en efi t-- th ey

were u se d fo r no rm al supp ort, an d e ve n t he n p et it io ne r ha d t o turn t o h er ch ur chforfin an ci al ass is tanc e. InBu tn er v . Comm is si on er, T.C. Mem o. 2 00 7- 13 6, we s ta te d t ha t “ we co ns id er the lac k o f si gn ifi can t b en efi t b y th e ta xp ay er s eek in g re li ef fro m joi ntan d s ev eral li ab il ity as afact orth atfav or s- 21 -

[* 21 ] gra nt in g re li ef u nd er s ect io n 6 01 5( f).” See als o B landv. Co m m is si on er, T.C. Mem o. 2 01 1- 8; DeMat to s v . Commis si on er, T.C. Mem o. 2 01 0- 11 0. Acco rd in gl y , th is fact orweig hs infav orof g ran ti ng rel ie f.

6. Co m

pl ianc e The in qu iry un de r th is fact oris whet he r a t ax pa y er h as m ad e a g oo d- fai th effo rt t o c om

pl y with t he Fed eral in co m e ta x l aws forth e ta xabl e y ears fol lo win g th e y ear o r y ears to whi chth e reque stfor rel ie f rel at es . Rev . Pro c. 20 03 -6 1, s ec. 4.0 3( 2) (a)( vi ). Pet it io ne r’s reque stforrel ie f co ve rs th e y ears 20 02 th ro ug h 2 00 5,
an d t hu s we e xa min e h er co m pl ianc e fo r th e y ears aft er 2 00 5. As of t he da te of tri al , othe r th anforth e y ears at i ss ue pe ti ti on er h adanou ts tand in g t ax li ab il ity on ly for 2 00 7. Ho wev er, s he was l at e in fil in g h er t ax returns for20 06 , 20 07 , 20 08 , and20 10 . Whi le we reco gn iz e th atsh e was go in g t hr ou gh a ve ry di ffi cu lt ti m e in he r li fe, we can no t s ay , onth e b as is of t he ev id en ce i n t he reco rd , th atsh e
m ad e a g oo d- fai th effo rt t o c om pl y with t he tax laws . There fo re, thi s fa ct or weig hs ag ai ns t re li ef.

7. Abu se Abu se by the no nr eque st in g s po us e fav or s re li ef. Rev . Pro c. 20 03 -6 1, s ec. 4.0 3( 2) (b )(i ). Cla im s o f ab us e requi re s ub st an ti at io n o r sp eci fic ity inall eg at io ns . See Kn orr v. C omm is si on er, T.C. Mem o. 2 00 4- 21 2. Pe ti ti on er d idno t al le ge th at- 22 -

[* 22 ] sh e was ab us edby Mr. Cut le r. Ther efo re, thi s fa ct oris ne utral . See Re v. Pro c. 20 03 -6 1, s ec. 4 .03 (2 )(b ).

8. Men ta l o r Ph y si cal Heal th The re i s i ns uf

fic ie ntev id en ce i n the reco rdto supp ort a f in di ng th at pe ti ti on er was inpo orm en ta l o r ph y si cal he al th du rin g the y ears inis su e. Pet it io ne r’s co un se l s ta te d a t tria l tha t h e d idno t i nt en d t o p res en t ev id en ce o n t hi s fact or , andpe ti ti on er d idno t ar gu e th is fact oron bri ef. Thi s fa ct oris ne utral
. D. Not ic e 2 01 2- 8 On J anua ry

5, 2 01 2, the Co m

m is si on er i ss ue d No ti ce 2 01 2- 8, 2 01 2- 4 I.R .B. 30 9, an no un ci ng a pr op os edrev enue pro cedur e upd at in g R ev . Pro c. 20 03 -6 1,
supr a. Thatpro po se d re ve nu e p ro cedur e, if fin al iz ed , wil l re vi se th e fac to rs th at th 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). In Sri ram v. Co m m is si on er, T.C. Mem o. 2 01 2- 91 , sl ip op . at 9 n.7 , we st at edth atwe wou ld“ 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 vi ew of th e fac t tha t the pro 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 clo se d.” See al so Yos in sk i v
. Co m m is si on er, T.C. Mem o. 2 01 2- 19 5 (c on ti nu in g t o app ly Rev. Pro c. 20 03 -6 1,
supr a); Deih l v . Comm is si on er, T.C. Mem o. 2 01 2- 17 6 (s am e).- 23 -

[* 23 ] The on ly facto r th atwou ldch an ge un de r th e p ro po se d re ve nu e p ro cedur e is th e si gn ifi can t b en efi t fa ct or . It wo ul d c ha ng e fro m fav or ab le to ne ut ral , as the
ev id en ce s ho ws tha t n ei th er s po us e rec ei ve d asi gn ifi can t b en efi t fr om th e unp ai d ta x l iabi li ti es . See No ti ce 2 01 2- 8, s ec. 4 .03 (2 )(e) , 20 12 -4 I.R.B. at31 4. Be cau se th e p ro po se d re ve nu e p ro cedur e is no t yet fin al an d wo ul d b e le ss fav or ab le to pe ti ti on er, we wil l co nt inue to ap pl y Rev . Pro c. 20 03 -6 1, s up ra. E. Bal an ci ng th e Fac to rs Thre e fac to rs weig h i n fa vo r of rel ie f (m ari ta l s tatu s, ec on om ic ha rd sh ip , an d s ig ni fic an t b en efi t fa ct or s) , two fact or s wei gh ag ai ns t re li ef (kno wled ge an d
co m pl ianc e fac to rs ), an d t hr ee fa ct or s ar e n eu tra l (l eg al ob li ga ti on , abu se , and
m en ta l o r ph y si cal he al thfact or s) . There fo re, o n apu rel y nu m eri cal ba si s, the fact or s wei gh infav orof g ran ti ng rel ie f. Bu t i n a dd it io n t o the fact or s, wh en co ns id eri ng all th e rel ev an t fa ct s an d c irc um st an ces , see Pu ll in s v . Comm is si on er, 13 6 T.C. at44 8, the re i s a c om pe ll in g re as on to gra ntpe ti ti on er re li ef. Whe n M r. Cu tl er qui t wo rk in g a t the de nt al pra ct ic es , m ov edto Cal ifo rn ia , andlef t p et it io ne r to supp ort h ers el f an d fi ve m in orch il dr enon he r own , sh e worke d h ardto ge t h er li fe b ackon tra ck . W e co m m en d p et it io ne r fo r he r pe rs ev eran ce an d b el ie ve th at sh e d es erv es th e o pp ortu ni ty to m ov e fo rwardinli fe wi th ou t s ho ul de rin g t ax li ab il it ie s fr om

he r pa stm arri ag e th atare at tri bu tabl e so le ly to M r. Cu tl er’s- 24 -

[* 24 ] in co m e. Co ns eque nt ly, we co nc lu de th 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 6 01 5( f) fo r 20 02 th ro ug h 2 00 5. II. Co ll ect io n R ev ie w andth e Lev ie d F un ds Nex t we ad dr es s p et it io ne r’s reque stforrev ie w of re sp on de nt ’s de te rm in at io n t o p ro ceedwith the pro po se d l ev y act io n fo r 20 05 . In h er CDP he ari ng reque stsh e al le ge d t ha t the lev ie d fu nd s b el on ge d t o h er ch il dr enan d reque st edth ei r return a ndsh e reque st edin no cen t s po us e rel ie f as a de fen se to th e pr op os edlev y

act io n fo r 20 05 . In h er p et it io n s he reque st s tha t we o rd er res po nd en t t o re turnth e le vi edfun ds
. A. Pro po se d Lev y

Acti on for

20 05 W e h av e al ready

de te rm in edth atpe ti ti on er i s en ti tl edto in no cen t s po us e rel ie f fo r 20 02 th ro ug h 2 00 5, the effe ctof wh ic h i s t o re li ev e h er o f pe rs on al li ab il ity for th e unp ai d t ax with re sp ectto th os e y ears . Thu s, the is su e o f th e pr op os edlev y

act io n fo r 20 05 is m oo t. See Green e-Th ap ed i v . Comm is si on er, 1 26 T.C. 1, 7 (20 06 ) (fi nd in g t ha t the pro po se d l ev y act io n was m oo t b ecau se th e Co m m is si on er’s o ffs etof t he tax pa y er’s o ve rp aym en t fo r a l at er y ear a ga in sthe r ta x a cco un t fo r th e d et erm in at io n year ha d s at is fie d h er u np ai d t ax li ab il ity inful l); Gerak io s v . Comm is si on er, T.C. Mem o. 2 00 4- 20 3 (d is mis si ng th e co ll ect io n rev ie w pro ceed in g a s m oo t b ecau se th ere wer e n o u np ai d t ax li ab il it ie s fo r th e- 25 -

[* 25 ] de te rm in at io n years upo n wh ic h ali enor l ev y co ul d b e b as edaft er the ta xp ay er h adpa idhi s l iabi li ti es inful l); Ch oc al lo v. Co m m is si on er, T.C. Mem o. 20 04 -1 52 (di sm is si ng th e co ll ect io n re vi ew pr oc eed in g a s m oo t b ecau se th e Co m m is si on er h adackno wled ge d t ha t the tax li ab il ity he ha d b eentrying to co ll ect by lev y ha d b eenim

pr op erl y ass es se d, h adrefu nd edpre vi ou sl y co ll ect edam ou nt s with i nt eres t, an d h adag reedth atth ere was no unpa idtax li ab il ity up on whi cha le vy cou ldbe ba se d) . W e are lef t t o d eci de th e m at te r of

th e le vi edfun ds . Firs t we de ci de to who m

th ey be lo ng ed
. B. Owner sh ip of t he Levi edFund s The reco rdest ab li sh es th atth e le vi edfun ds cam e fro m fiv e se pa rat e b an k
acco un ts at B an k o f Am eri canFo rk . Peti ti on er t es ti fie d t ha t tho se acco un ts be lo ng edto he r ch il dr en . She furth er t es ti fie d t ha t the fun ds inth os e acc ou nt s were ea rn edby her ch il dr en“bi t b y bi t” . W e fi ndhe r te st im on y to be cred ib le
. Her s on , Cod y

Cu tl er, wh o was anadul t atth e ti m e o f tr ia l, s im il arl y tes ti fie d t ha t th e fu nd s i n t he acco un ts be lo ng edto hi m an d h is si bl in gs , so m e o f who m were
m in or s atth e ti m e o f tr ia l. He fu rth er t es ti fie d tha t the fun ds inhi s ac co un t wer e earn edfro m

hi s jo b. We lik ewis e fi ndhi s t es ti m on y to be cred ib le . On th e b as is of th e fo reg oi ng , andth ere b ei ng no ev id en ce t o t he co nt rary, w e fi ndth at- 26 -

[* 26 ] pe ti ti on er d idno t h av e an y own ers hi p i nt eres t i n t he lev ie d fu nd s- -th ey be lo ng edto he r ch il dr en . C. Ju ris di ct io n Ov er the Levi edFund s Nex t we m

us t d et erm in e whe th er we h av e juri sd ic ti on to ord er re sp on de ntto return the lev ie d fu nd s. Th e Tax Co urt i s a c ou rt o f li m it edjuri sd ic ti on ; we m ay ex erci se juri sd ic ti onon ly to the ex te ntex pr es sl y au th or iz edby Con gr es s. Sec
. 74 42 ; s ee al so Neel y

v. Co m mis si on er, 1 15 T.C. 28 7, 2 90 -2 91 (20 00 ); Es tate of Fo rg ey v. Co m m is si on er, 1 15 T.C. 14 2, 1 45 -1 46 (20 00 ); He nry Ran do lp h Co ns ul ti ng v. Co m

m is si on er, 1 12 T.C. 1, 4 (19 99 ). Our juris di ct io n i n t he se co ns ol id at edcas es is pre di cat edup on sec ti on s 6 01 5( e)(1 ) an d 6 33 0( d) (1 ). Sect io n 60 15 (e)( 1) gi ve s the Tax C ou rt juris di ct io n t o d et erm in e th e ap pr op ria te rel ie f
av ai labl e to a ta xp ay er u nd er s ect io n 6 01 5, i nc lu di ng cred itor r efu ndun de r se ct io n 6 01 5( g) . See Wash in gt on v. Co m m is si on er, 1 20 T.C. 13 7, 1 53 -1 54 (2 00 3) ; Ro ok s v . Comm is si on er, T.C. Mem o. 2 00 4- 12 7. Se ct io n 6 33 0( d) (1 ) gi ve s th e Tax Co urt juris di ct io n “ to rev ie w th e d et erm in at io n m ad e b y th e App eal s Offi ce i n c on ne ct io n wi th th e se ct io n 6 33 0 h eari ng .” Mo se r v. C omm is si on er, T.C. Mem o. 2 01 2- 20 8; see als o F rei je v. Co m m is si on er, 1 25 T.C. 14 , 25 (20 05 ) (“ Ourjuri sd ic ti on un de r se ct io n 6 33 0 c ov ers th e ‘det erm in at io n’ of the App eal s of fic er wh o c on du ct edth e h eari ng reque st edun de r th atsec ti on .”). Res po nd en t- 27 -

[* 27 ] arg ue s tha t we d o n otha ve juri sd ic ti on un de r ei th er s ect io n t o g ran t pe ti ti on er the rel ie f sh e reque st s re ga rd in g t he lev ie d fu nd s. We will ex am in e eac h
se ct io n i n turn.

1. Refu ndor C red itUnd er Se ct io n 6 01 5( g) (1 ) Sect io n 6 01 5( g) (1 ) pr ov id es : “ Exc ep t as pro vi de d i n p arag rap hs (2) an d (3 ),
no twi th st an di ng an y

othe r law or ru le of l aw (o th er tha n s ect io n 6 51 1, 6 51 2( b) , 71 21 , or 7 12 2) , cred itor r efu ndsh al l b e al lo wedor m ad e to th e ex te ntatt rib ut ab le to th e ap pl ic at io n o f th is sec ti on .” Howev er, b efo re an y tax pay er m ay

be all owe d a ref un d o r cre di t, the re m

us t b e a d et erm in at io n tha t the tax pa y er h as m ad e an ov erp aym en t. Mi ni ha n v . Comm is si on er, 1 38 T.C. 1, 8 (20 12 ). Sect io n 6 40 2( a)
m ak es th is ex pr es sl y

cle ar, s ta ti ng : SEC. 6 40 2( a). Gen eral Ru le .--Inth e cas e o f an y ov erp aym en t, th e Sec ret ary, withi n t he ap pl ic ab le pe rio d o f li m it at io ns , m ay cred it th e am ou ntof s uc h o ve rp aym en t, i nc lu di ng an y in te res t al lo wed th ereo n, ag ai ns t an y

li ab il ity inres pe ctto anin te rn al rev enue tax on th e p artof t he pe rs on who m ad e th e o ve rp aym en t an d s ha ll * * * refu ndan y

ba lanc e to su chpe rs on . [Em ph as is ad de d.] A tax pay er m ak es anov erp aym en t i f he or s he rem it s fu nd s t o t he Secr et ary in
ex ces s o f th e ta x fo r whi chhe or s he is li ab le . Jo ne s v . Lib erty Glas s C o., 3 32 U.S. 52 4, 5 31 (19 47 ) (d efi ni ng anov erp aym en t as “ an y pa ym en t i n e xc es s o f th at whi chis pro pe rly du e”).- 28 -

[* 28 ] The refo re, ev enif atax pa y er i s re li ev edfro m joi ntan d s ev eral li ab il ity for th e ta x due on a joi ntreturn b y ap pl ic at io n o f se ct io n 6 01 5( f), th e ta xp ay er i s n ot
en ti tl edto a refu ndun de r se ct io n 6 01 5( g) (1 ) un le ss th e ta xp ay er m ad e an ov erp aym en t-- i.e., “pa [id ] m or e th anis owed , forwhat ev er re as on or n o re as on at al l.” Un it edSta te s v . Dalm , 49 4 U.S. 5 96 , 61 0 n .6 (1 99 0) ; s ee Ord lo ckv. Co m m is si on er, 1 26 T.C. 47 , 61 (20 06 ) (h ol di ng th ata ta xp ay er en ti tl edto in no cen t s po us e rel ie f was no t en ti tl edto a refundof jo in t t ax li ab il it ie s p ai d u si ng co m m un ity pro pe rty ass et s o f th e m ari ta l es ta te ), aff’d, 5 33 F.3d11 36 (9t h C ir. 20 08 ); Kauf

m anv. Co m

m is si on er, T.C. Mem o. 2 01 0- 89 (de cl in in g s ect io n 6 01 5 refu ndwhen fun ds were p ai d b y de ceas edhu sb an d’s es ta te ); R os en th al v. Co m m is si on er, T.C. Mem o. 2 00 4- 89 , sl ip op . at 1 3 n .6 (“ It a ls o m us t b e sh own th atth e p aym en ts were n otm ad e wit h t he joi ntreturn a ndwere n otjoi ntpa ym en ts
orpa ym en ts th atth e n on reque st in g s po us e m ad e.”). Thi s co nc lu si on is co ns is te nt with R ev . Pro c. 20 03 -6 1, s ec. 4 .04 (2 ), 20 03 -2 C.B. at29 9, i n wh ic h t he IRS st at ed : “ Ina cas e in vo lv in g a n u nd erp aym en t o f in co m e ta x, a r eque st in g s po us e is eli gi bl e fo r a ref

un d o f se pa rat e p aym en ts th athe or s he m ad e aft er Jul y 22 , 19 98 , if the reque st in g s po us e es tabl is he s tha t h e o r sh e p ro vi de d t he fun ds us edto
m ak e th e p aym en t fo r whi chhe or s he see ks a refu nd .”- 29 -

[* 29 ] The requi rem en t o f Rev . Pro c. 20 03 -6 1, s up ra, tha t a p et it io ni ng sp ou se
m ak e a “ se pa rat e p aym en t” or “ pr ov id e th e fund s” us edto pa y th e joi nttax li ab il ity inord er t o b e en ti tl edto a refu ndun de r se ct io n 6 01 5( g) (1 ), is inacco rd with s ect io n 6 40 2, wh ic h re qu ire s, i nt er al ia , th atinord er t o o bt ai n arefu nd , a pe rs on m us t m ak e anov erp aym en t. The de te rm in at io n wh ethe r a p et it io ni ng sp ou se m ad e a “ se pa rat e p aym en t” or p ro vi de d t he fun ds us edto m ak e a p aym en t
canso m et im es be a m

urky tas k. Se e, e.g ., Min ih anv. Co m m is si on er, 1 38 T.C. at 11 -1 8 (turni ng to Sta te law t o d et erm in e th e ta xp ay er’s o wne rs hi p i nt eres t i n a joi ntbankacco un t tha t the IRS l ev ie d upo n) . Butth is is no t s uc h acas e. Pet it io ne r do es no t ar gu e th atsh e h adanin te res t i n t he lev ie d fu nd s o r th atth ey were p ro vi de d b y

he r. Qui te to th e co nt rary, she arg ue s tha t the lev ie d fu nd s be lo ng edto he r ch il dr en , andwe so fou nd . Con se qu en tl y , th e le vi edfun ds are n ot a p aym en t tha t s he m ad e to th e Sec ret ary. Acco rd in gl y , we can no t o rd er res po nd en t t o re turnth e le vi edfun ds to pe ti ti on er as a refu ndor c red itun de r se ct io n 6 01 5( g) (1 ).

2. Ju ris di ct io n Un de r Sec ti on 63 30 InGreen e-Th ap ed i v . Comm is si on er, 1 26 T.C. 1, we h el d t ha t we d o n ot ha ve juri sd ic ti on un de r se ct io n 6 33 0 t o d et erm in e anov erp aym en t o r to ord er a refu ndor c red itof t ax pa idina co ll ect io n re vi ew pr oc eed in g. Ho wev er, we al so- 30 -

[* 30 ] ackno wled ge d t ha t i n c ol le ct io n re vi ew pr oc eed in gs co m m en cedpu rs ua ntto
se ct io n 6 33 0 [t]hi s C ou rt h as ex erci se d i ts in he ren t equi tabl e p owe rs to ord er the Co m m is si on er t o re tu rnto th e ta xp ay er p ro pe rty tha t was im pr op erl y le vi edup on , see Ch oc al lo v. Co m m is si on er, T.C. Mem o. 2 00 4- 15 2, an d t o re qu ire th e Co m

m is si on er t o p ro vi de to th e ta xp ay er a cr ed it with re sp ectto pro pe rty tha t the Co m m is si on er h adsei zedpurs ua ntto a jeop ardy

lev y bu t h adim

pr op erl y refu se d t o s el l i n c om

pl ianc e wit h th e ta xp ay er’s reque stm ad e p ur su an t t o s ec. 6 33 5( f), s ee Zap ara v . Co m m is si on er, 1 24 T.C. 22 3 (2 00 5)
. [ 1 9 ] Green e-Th ap ed i v . Comm is si on er, 1 26 T.C. at 9 n.1 3. Inan y ev en t, i t wo ul d b e un ne ces sary

to de te rm in e whe th er we h av e th e in he ren t equi tabl e p owe rs un de r se ct io n 6 33 0 t o o rd er re sp on de ntto return t he lev ie d fu nd s (i .e., th e p ro pe rty tha t
was th e subjec t o f th e le vy for 2 00 2 t hr ou gh20 04 ) un le ss pe ti ti on er p ro pe rly
co m m en ceda co ll ect io n re vi ew pr oc eed in g p ur su an t t o s ect io n 6 33 0 fo r 20 02 th ro ug h 2 00 4. Re sp on de ntarg ue s tha t p et it io ne r di d n ot . Res po nd en t ad m it s tha t p et it io ne r’s CDP h eari ng reque stwas t im el y for 20 05 an d t ha t s he ti m el y

fil eda pe ti ti on with t hi s C ou rt r eque st in g re vi ew of hi s de te rm in at io n t o s us ta in th e p ro po se d l ev y act io n fo r 20 05 . Res po nd en t ar gu es , ho wev er, tha t p et it io ne r di d n otti m el y reque sta CDP h eari ng for20 02 th ro ug h Zapara was lat er af

firm edon ap pe al . See Zap ara v . Comm is si on er, 6 52 1 9 F.3 d 1 04 2 (9 th Cir . 20 11 ), aff’g 1 24 T.C. 22 3 (2 00 5)
.- 31 -

[* 31 ] 20 04 an d h e d idno t i ss ue a no ti ce o f de te rm in at io n und er s ect io n 6 33 0 fo r 20 02 th ro ug h 2 00 4, an d t he refo re we d o n otha ve juri sd ic ti on un de r se ct io n 6 33 0 to rev ie w th e co ll ect io n a ct io n fo r 20 02 th ro ug h 2 00 4. Onth e o th er h an d, pe ti ti on er ar gu es th atwe ha ve “ juri sd ic ti on to rev ie w all CDP ap pe al s” . She arg ue s tha t s he reque st eda CDP h eari ng withi n 1 3 d ay s o f th e d at e o f th e le vy to pr ot es t the sei zu re o f th e le vi edfun ds , th athe r reque stwas d en ie d, an d t ha t s he ti m el y fil eda pe ti ti on with t hi s C ou rt r eque st in g t ha t we o rd er re sp on de ntto return th e le vi edfun ds . W e ag ree wi th res po nd en t. Ourjuri sd ic ti on un de r se ct io n 6 33 0 d ep en ds up on th e is su an ce o f a v al id de te rm in at io n l et te r an d t he fil in g o f a t im el y pe ti ti on for

rev ie w. See s ec. 63 30 (d )(1 ); Oru m

v. Co m mis si on er, 1 23 T.C. 1, 8 (20 04 ), aff’d, 4 12 F.3d81 9 (7 th Ci r. 20 05 ); S arre ll v. Co m m is si on er, 1 17 T.C. 12 2, 1 25 (20 01 ); Off il er v . Co m m is si on er, 1 14 T.C. 49 2, 4 98 (20 00 ). On Fe br ua ry 17 , 20 07 , res po nd en t
m ai le d p et it io ne r a n ot ic e o f in te ntto lev y with re sp ectto he r unpa idFed eral in co m e ta x l iabi li ti es for20 02 th ro ug h 2 00 4, i n wh ic h h e n ot ifi edhe r of a pr op os edlev y

act io n fo r 20 02 th ro ug h 2 00 4 a ndhe r ri gh t t o ahe ari ng . Howev er, pe ti ti on er d idno t re qu es t a C DP he ari ng withi n t he 30 -d ay pe rio d p ro vi de d u nd er se ct io n 6 33 0( a)(3 )(B) . Con se qu en tl y , th e IRS pro ceed edwith c ol le ct io n. On Sep te m be r 5, 2 00 9, ap pr ox im at el y 2-1 /2 y ears lat er, the IRS i ss ue d alev y to Ban k- 32 -

[* 32 ] of Am eri canFo rkto co ll ectpe ti ti on er’s unp ai d F ed eral in co m e ta x l iabi li ti es fo r 20 02 th ro ug h 2 00 4. Re sp on de ntdi d n ot , andwas n otrequi redto , gi ve pe ti ti on er a s eco ndno ti ce b efo re the lev y to okpl ace. Se e se c. 63 30 (a)( 1)
. The let te r th atres po nd en t m ai le d t o p et it io ne r on Sep te m be r 5, 2 00 9, was a no ti ce o f in te ntto lev y

with re sp ectto pe ti ti on er’s unp ai d F ed eral in co m e ta x li ab il ity for 20 05 . It n ot ifi edhe r of

a pr op os edlev y

act io n fo r 20 05 an d h er ri gh t to a he ari ng . It h adno th in g t o d o wi th th e le vy for 2 00 2 t hr ou gh 20 04 th atto ok pl ace t he same day . On Sep te m be r 21 , 20 09 , pet it io ne r reque st eda CDP h eari ng fo r 20 02 th ro ug h 2 00 5. Her C DP he ari ng reque stwas t im el y for20 05 be cau se it
was m ad e wit hi n 3 0 d ay s o f th e n ot ic e o f in te ntto lev y for20 05 . See s ec. 63 30 (a)( 3) (B). Ho wev er, i t was no t t im el y for20 02 th ro ug h 2 00 4, as itwas m ad e
m or e th an2-1 /2 y ears aft er the no ti ce o f in te ntto lev y for20 02 th ro ug h 2 00 4. Se e id
. Pet it io ne r ha d aCDP h eari ng for20 05 . Fol lo win g t he he ari ng , res po nd en t is su eda de te rm in at io n l ette r to pe ti ti on er s us ta in in g t he pro po se d l ev y act io n fo r 20 05 , andsh e ti m el y

pe ti ti on edth is Co urt fo r rev ie w. Howev er, the de te rm in at io n le tt er h adno th in g t o d o wi th th e co ll ect io n a ct io n fo r 20 02 th ro ug h 2 00 4. Res po nd en t d et erm in edth atpe ti ti on er’s CDP h eari ng reque stwas u nt im el y for 20 02 th ro ug h 2 00 4. Pe ti ti on er d idno t h av e a CDP h eari ng for20 02 th ro ug h 2 00 4,- 33 -

[* 33 ] an d re sp on de ntdi d n otis su e a d et erm in at io n l et te r to pe ti ti on er fo r 20 02 th ro ug h 2 00 4. Th eref

or e, we do no t h av e juri sd ic ti on un de r se ct io n 6 33 0 t o rev ie w th e co ll ect io n a ct io n fo r 20 02 th ro ug h 2 00 4.

3. Wro ng fu l Lev y Pet it io ne r se em s t o a rg ue th e m eri ts of awron gf ul lev y act io n o n b eh al f of he r ch il dr en . The ex cl us iv e rem edy of ath irdpa rty seek in g re dr es s ag ai ns t the 2 0 IRS fo r le vyin g o n h is or h er p ro pe rty to s at is fy th e ta x l iabi li ty of an ot he r is to br in g awron gf

ul lev y act io n und er s ect io n 7 42 6. Se e EC Term of Ye ars Trus t v . Uni te d S tate s, 5 50 U.S. 42 9, 4 35 (20 07 ); Dahn v. Un it edSta te s, 1 27 F.3d12 49 , 12 52 -1 25 4 (1 0t h C ir. 1 99 7) . Howev er, the Dis tri ctCo urts ha ve ex cl us iv e juri sd ic ti on to he ar wro ng fu l l ev y act io ns un de r se ct io n 7 42 6. Se e se c. 74 26 (a). D. Co nc lu si on W e can no t o rd er re sp on de ntto return t he lev ie d fu nd s t o p et it io ne r (1 )
un de r se ct io n 6 01 5( g) (1 ) be cau se th ey di d n otbe lo ng to he r, (2 ) un de r se ct io n 63 30 be cau se we do no t h av e juri sd ic ti on to rev ie w th e co ll ect io n a ct io n fo r 20 02 th ro ug h 2 00 4, o r (3 ) un de r se ct io n 7 42 6 b ecau se we do no t h av e juri sd ic ti on to he ar wro ng fu l l ev y

act io ns . Peti ti on er arg ue s tha t h er ch il dr enco ul d n otpu rs ue a
W e d o n otad dr es s the m eri ts of awron gf ul lev y act io n b ecau se we do no t 2 0 ha ve juri sd ic ti on to he ar s uc h a n a ct io n.- 34 -

[* 34 ] rem edy

inFed eral co urt. Whil e we s ym pa th iz e wit h h er ch il dr en , we m us t ap pl y th e la w as wri tt en ; i t i s up t o C on gr es s t o a ddres s que st io ns of f ai rn es s an d to m ak e im

pr ov em en ts to th e la w. Metz ge r Tru stv. Co m m is si on er, 7 6 T.C. 4 2, 59 -6 0 (1 98 1) , aff’d, 6 93 F.2d45 9 (5 th Cir . 19 82 ). W e h ol d t ha t p et it io ne r is en ti tl edto in no cen t s po us e rel ie f fo r 20 02 th ro ug h 20 05 , th atth e is su e o f whe th er re sp on de ntab us edhi s d is cret io n b y su st ai ni ng th e pr op os edlev y

for20 05 is m oo t, an d t ha t we ca nn otord er re sp on de ntto return t he le vi edfun ds . W e h av e co ns id eredall arg um en ts m ad e in reac hi ng ou r de ci si on an d, t o t he ex te ntno t m en ti on ed , we con cl ud e th atth ey are m oo t, i rrel ev an t, o r witho utm eri t. To re fle ctth e fo reg oi ng , An ap pr op ria te ord er an d d eci si on wil l b e en te redindo ck etNo. 1 68 40 -1 0L. Deci si on wil l b e en te redforpe ti ti on er in do ck etNo. 1 47 1- 11
.