T.C. Mem o. 2 01 6- 16 4

UNITED STAT ES TAX COURT

JOSEP H N. HUN TER, Peti ti on er v . COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 16 46 5- 14 . Fi le d Au gu st25 , 20 16 .
Jo se phN. Hun te r, pr o s e. Su sa n K. Bo ll m anan d Den is e A. Dil or et o, fo r res po nd en t.

MEMORANDUM FINDINGS OF FACT AND OPINION ASHFORD, Ju dg e: Pet it io ne r se ek s re vi ew of res po nd en t’s d et erm in at io n de nyin g h is reque stforrel ie f fro m joi ntan d s ev eral li ab il it y un de r se ct io n 60 15 (b ), (c), an d (f

). 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 (co nt in ue d...)- 2 -

[* 2] The on ly iss ue forde ci si on is whet he r pe ti ti on er i s en ti tl edto rel ie f fro m joi ntan d s ev eral li ab il it y un de r se ct io n 6 01 5( b) , (c), o r (f) fo r anun de rs ta te m en t of tax forth e 2 01 1 t ax ab le y ear. We ho ldth athe is no t en ti tl edto su ch rel ie f. FINDINGS OF FACT Pet it io ne r res id edinW es t Vi rg in iaat the ti m e th e p et it io n was fil edwith t he Co urt. Pet it io ne r an d S hann on Hun te r m arri edin19 94 , andth ey rem ai ne d m arri ed in 20 11 . From th ei r m arri ag e u nt il th ei r se parat io n i n No ve m be r 20 11 pe ti ti on er’s

2
em pl oym en t wi th va rio us co m pa ni es an d h is real est at e ren ta l b us in es s wer e th e so le so ur ces of i nc om e fo r th e fam il y ; M rs . Hun te r was a st ay -at -h om e m ot he r to th ei r fo urch il dr en . In20 07 pe ti ti on er was work in g a s a m ech an ic fora tr an sp orta ti on co m pa ny whe n h e was for cedto lea ve hi s jo b a fte r su ffer in g aworkpl ace i nju ry . As a res ul t of th e in jury he ap pl ie d fo r an d was award edSo ci al Secu rit y di sabi li ty ben efi ts . In 20 11 he rece iv eda lu m

p- su m pa ym en t o f $4 3,6 57 for

So ci al Secu rit y

di sabi li ty be ne fit s. (...co nt inue d) 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 urt Ru le s o f Prac ti ce an d P ro cedur e. Pet it io ne r an d M rs . Hun te r ul ti m at el y di vo rcedinDecem

be r 20 12 . 2- 3 -

[* 3] Dur in g t he m arri ag e Mrs . Hun te r ha nd le d t he fam il y ’s fin an ci al affa irs , in cl ud in g p rep ari ng , or h av in g p rep aredby a tax pro fes si on al , th ei r Fed eral in co m e ta x re tu rn s. Fo r 20 11 an d e ach y ear b efo re tha t dur in g t he ir m arri ag e, Mrs . Hun te r fi le d jo in t Fe de ral in co m e ta x re turn s fo r he rs el f an d p et it io ne r; p et it io ne r was ne ve r in vo lv edinth ei r pr ep arat io n o r fi li ng , andform an y of t he y ears , in cl ud in g 2 01 1, M rs . Hun te r si gn edpe ti ti on er’s n am e to th e returns witho uthi s ha vi ng rev ie wedth em . To th aten d, wi thres pe ctto th e 2 01 1 t ax ab le y ear, M rs . Hun te r ti m el y

fil eda joi ntFed eral in co m e ta x re tu rn(joi ntreturn) on Octo be r 11 , 20 12 , refl ect in g atax refu ndof $ 4,6 88 . On J ul y 8, 2 01 3, re sp on de ntis su eda joi ntno ti ce o f de fic ie nc y to pe ti ti on er an d M rs . Hun te r fo r th e 2 01 1 t ax ab le y ear, d et erm in in g ade fic ie nc y inth ei r Fed eral in co m e ta x o f $4 ,36 4 a ndanaccu racy-rela te d p en al ty pur su an t t o s ect io n 66 62 (a) o f $1 ,67 3. Th e n ot ic e o f de fic ie nc y was b as edon th ei r fai lu re t o p ro pe rly rep ort the lu m

p- su m pa ym en t t o p et it io ne r of

So ci al Secu rit y

di sabi li ty ben efi ts as well as t he ir f

ai lure t o re po rt c ert ai n i nt eres t i nc om e fro m Hun ti ng to n Nat io na l Ban k andren ta l i nc om e fro m Ch arl es to n- Kan awh a Hou si ng Aut ho rit y . Neithe r pe ti ti on er n orMrs . Hun te r fi le d ape ti ti on with t hi s C ou rt i n re sp on se to th e n ot ic e of de fic ie nc y .- 4 -

[* 4] InAug us t 2 01 3 p et it io ne r fi le d aFo rm 88 57 , Reque stforInn oc en t Sp ou se Rel ie f. In h is reque stpe ti ti on er re pr es en te d t ha t h e d idno t kno w Mrs . Hun te r ha d fil eda joi ntFed eral in co m e ta x re tu rnwith re sp ectto th e 2 01 1 t ax ab le y ear a nd th atbe fo re p rep ari ng th e return s he ha d wi th dr awnall th e m on ey fro m th ei r ba nk acco un t wi th ou t h is kn owl ed ge . Howev er, attri al pe ti ti on er ac kn owl ed ge d t ha t h e di d n otfil e a s ep arat e return fo r 20 11 an d t ha t a Dec em be r 26 , 20 12 , ord er o f th e Fam il y Co urt o f Kan awh a Co un ty, W es t Vi rg in ia , di ss ol vi ng pe ti ti on er an d M rs . Hun te r’s m arri ag e, reci te s t ha t h e an d M rs . Hun te r cam e b efo re tha t co urt o n Octo be r 9, 2 01 2, two d ay s b efo re the fil in g o f th e joi ntreturn, h av in g re ach edan ag reem en t co nc ern in g t he pa ren ti ng an d p ro pe rty iss ue s, i nc lu di ng ag reei ng to fil e a joi ntFed eral in co m e ta x re turnfor20 11 . On Oct ob er 7 , 20 13 , res po nd en t s en t p et it io ne r an d M rs . Hun te r a n ot ic e o f ba la nc e due forth e 2 01 1 t ax ab le y ear o f $3 ,93 6. OnOcto be r 29 , 20 13 , Mrs . Hun te r al on e se ntba ck

a res po ns e, di sa gr eei ng with re sp on de nt ’s com pu ta ti on s an d p ro vi di ng he r own co m pu ta ti on of t he 20 11 tax li ab il it y . She als o a tt ach eda Fo rm 94 65 , Ins ta ll m en t Ag reem en t Re qu es t, s ta ti ng th atas p artof t he di vo rce s he ha d re cei ve d t he en ti re 2 01 1 t ax refu ndan d t ha t s he wou ldtak e fu ll res po ns ib il it y fo r th e am ou ntowedfor20 11 gi ve n t ha t s he ha d fi le d t he return fo r th aty ear.- 5 -

[* 5] Mrs . Hun te r reque st edth athe r 20 13 tax refu ndbe ap pl ie d t owa rdth e li ab il it y an d t ha t s he be all owe d t o p ay $2 5 m on th ly to s at is fy

th e b al an ce. On No ve m

be r 25 , 20 13 , on th e b as is of M rs . Hun te r’s res po ns e to th e pr ev io us no ti ce o f ba lanc e due , res po nd en t s en t p et it io ne r an d M rs . Hun te r an ot he r no ti ce o f ba la nc e due whi ch refl ect eda reduc ed20 11 li ab il ity of $ 1,5 76 , at tri bu tabl e to un rep orte d t ax ab le So ci al Secu rit y in co m e o f $7 ,99 7 a s a r es ul t o f pe ti ti on er’s h av in g re cei ve d dur in g 2 01 1 S oc ia l Se cu rit y di sabi li ty ben efi ts of $4 3,6 57 an d u nr ep orte d i nt eres t i nc om e o f $1 4 fr om Hun ti ng to n Nat io na l Ba nk . Onl y Mrs . Hun te r ag ai n s en t b acka res po ns e, th is ti m e ag reei ng with re sp on de nt ’s co m pu ta ti on s. Sh e al so ag ai n a tt ach eda Fo rm 94 65 , reque st in g t o p ay

th e reduc ed 20 11 li ab il it y

inm on th ly paym en ts of $ 25 . Accor di ng to res po nd en t’s ce rti fie d acco un t tran sc rip t fo r pe ti ti on er an d M rs . Hun te r’s 20 11 tax ab le y ear, o ne pa ym en t of $2 5 was m ad e o n Dec em be r 17 , 20 13 . On M ay 8, 2 01 4, re sp on de nt ’s Offic e o f App eal s i ss ue d afin al de te rm in at io n t o p et it io ne r de nyin g re li ef fro m joi ntan d s ev eral li ab il it y un de r se ct io n 6 01 5( b) , (c), an d (f ) be cau se “ rel ie f is no t al lo wedon tax y ouowe o n your own in co m e.” On J ul y

7, 2 01 4, p et it io ne r ti m el y fil eda pe ti ti on with t hi s C ou rt se ek in g re vi ew of

res po nd en t’s d et erm in at io n. Des pi te be in g g iv enno ti ce- 6 -

[* 6] of t he fil in g o f th e p et it io n, M rs . Hun te r di d n otin te rv en e p ur su an t t o s ect io n 60 15 (e)( 4) an d R

ul e 3 25 . OPINION Gen eral ly, m arri edtax pa y ers m ay ele ctto fil e a joi ntFed eral in co m e ta x return. Se c. 60 13 (a). If ajoi ntreturn i s m ad e, th e ta x i s co m pu te d o n the sp ou se s’ ag gr eg at e in co m e, an d e ach sp ou se is ful ly resp on si bl e fo r th e acc ur acy of th e return andis joi nt ly andsev eral ly liab le forth e en ti re am ou ntof t ax sh own on th e return o r fo un d t o b e o win g. Se c. 60 13 (d )(3 ); B ut le r v. C omm is si on er, 1 14 T.C. 27 6, 2 82 (20 00 ). Neve rth el es s, u nd er ce rta in cir cu m st an ces , a sp ou se who ha s m ad e a joi ntreturn m ay

see k re li ef fro m

joi ntan d s ev eral li ab il it y un de r pr oc edur es setforth insec ti on 60 15 . Sec. 6 01 5( a). Sec ti on 60 15 pro vi de s a sp ou se with t hr ee al te rn at iv es : (1 ) fu ll or p art ia l re li ef u nd er s ub se ct io n (b ), (2 ) pr op orti on at e rel ie f un de r subs ect io n (c ), an d (3 ) if rel ie f is no t av ai labl e u nd er subs ect io n (b ) or(c), equi tabl e rel ie f un de r subs ect io n (f ). Inth is cas e, res po nd en t ev al ua te d p et it io ne r’s en ti tl em en t t o re li ef fro m joi ntan d s ev eral li ab il it y un de r eac h a lt ern at iv e, an d we h av e juri sd ic ti on to do th e sa m e. See s ec. 6 01 5( e)(1 ). In d oi ng so , we app ly a de n ov o s ta nd ardof r ev ie w, as well as ade no vo sco pe of r ev ie w. Port er v . Comm is si on er, 1 32 T.C. 20 3, 2 10 (2 00 9) . Peti ti on er b ears th e b ur de n o f pr ov in g tha t h e is en ti tl edto rel ie f un de r- 7 -

[* 7] sec ti on 60 15 . See Ru le 14 2( a); Po rte r v. C omm is si on er, 1 32 T.C. at 2 10 ; Al t v. Co m m is si on er, 1 19 T.C. 30 6, 3 11 (20 02 ), aff’d, 1 01 F. App ’x 34 (6t h C ir. 20 04 ); S te rg io s v . Comm is si on er, T.C. Mem o. 2 00 9- 15 . A. Vali d J oi ntReturn W e fi rs t ad dr es s wh ethe r pe ti ti on er an d M rs . Hun te r m ad e a v al idjoi nt Fed eral in co m e ta x re tu rnfor 20 11 be cau se inhi s re qu es t fo r rel ie f fro m joi ntan d se ve ral li ab il it y

an d a t tria l, p et it io ne r as se rte d t ha t n oton ly hadhe no t s ig ne d t he joi ntreturn b utth athe was c om pl et el y un aware Mrs . Hun te r ha d e ve n fi le d jo in tl y fo r 20 11 . Whe th er an in co m e ta x re tu rnis a joi ntreturn o r a s ep arat e return o f th e ot he r sp ou se is a qu es ti on of f act . Harrin gt onv. Co m

m is si on er, T.C. Mem o. 20 12 -2 85 , at * 8 (c it in g Hei m v. Co m m is si on er, 2 7 T.C. 2 70 (19 56 ), aff’d, 2 51 F.2 d 4 4 (8 th Cir . 19 58 )) (i nv ol vi ng anele ctro ni cal ly file d re tu rn ). The de te rm in at iv e fac to r in de ci di ng whet he r a fi le d re tu rnqu al ifi es as ajoi ntreturn i s whe th er a h us bandan d wi fe i nt en de d t o fi le a joi ntreturn. Zie gl er v . Co m m is si on er, T.C. Mem o. 2 00 3- 28 2, s li p o p. at8 n .4 (c it in g S to ne v. Co m m is si on er, 2 2 T.C. 8 93 (19 54 )). In te ntis de te rm in edas o f th e ti m e th e return was fil ed . Park er v . Comm is si on er, T.C. Mem o. 1 97 8- 23 . In ev al ua ti ng in te nt , th is Co urt h as co ns id eredwhet he r th e n on si gn in g s po us e fi le d asep arat e return, whe th er the no ns ig ni ng sp ou se ob jecte d t o t he joi ntfil in g, an d wh ethe r th e fi li ng- 8 -

[* 8] hi st ory

in di cat es anin te ntto fil e joi nt ly. Harri ng to n v . Comm is si on er, T.C. Mem o. 2 01 2- 28 5. Inth is cas e, pe ti ti on er p res en te d n o e vi de nc e wha ts oe ve r to co rro bo rat e h is as se rti on s re ga rd in g t he joi ntreturn a nd , th us , th ey are, s ta nd in g a lo ne , unpe rs ua si ve . See, e.g ., She a v . Comm is si on er, 1 12 T.C. 18 3 1 89 (19 99 ) (“ As we ha ve st at edm an y

ti m es be fo re, thi s C ou rt i s n otbo un d t o a ccep t a t ax pa y er’s s el fse rv in g, u nv eri fie d, an d und oc um en te d t es ti m on y .”). In de ed , pet it io ne r’s
m an ife st edin te ntsh ows ot he rwis e. Pet it io ne r ackno wled ge d a t tria l tha t h e an d Mrs . Hun te r ha d c om e b efo re the Fam il y Co urt o f Kan awh a Co un ty, W es t Virg in ia , on Octo be r 9, 2 01 2, h av in g p rev io us ly reach edanag reem en t wi th res pe ctto , am on g o th er thi ng s, p ro pe rty iss ue s, i nc lu di ng th e fi li ng of t he joi nt Fed eral in co m e ta x re tu rnfor 20 11 . On th e b as is of t hi s ac kn owl ed gm en t, i t i s cl ear t ha t p et it io ne r ha d a lre ady ag reedto fil e joi nt ly w it h M rs . Hun te r whe n t he joi ntreturn was ti m el y

fil edon Octo be r 11 , 20 12 . Peti ti on er al so adm it te d t ha t h e an d M rs . Hun te r ha d a lways fi le d jo in t Fe de ral in co m e ta x re tu rn s an d t ha t h e ne ve r m ad e an y

att em ptto fil e a s ep arat e Fed eral in co m e ta x re turnfor20 11 de sp it e h av in g re cei ve d $ 43 ,65 7 i n S oc ia l Se cu rit y di sabi li ty ben efi ts durin g t ha t- 9 -

[* 9] y ear. Acco rd in gl y , th es e fac ts supp ort a f in di ng th atpe ti ti on er an d M rs . 3 Hun te r m ad e a v al idjoi ntFed eral in co m e ta x re tu rnfor20 11 . B. Rel ie f Und er Se ct io n 6 01 5( b) Inord er t o b e en ti tl edto rel ie f un de r se ct io n 6 01 5( b) , th e sp ou se who reque st s t ha t re li ef (re qu es ti ng sp ou se ) m us t s at is fy

th e fo ll owi ng co nd it io ns : (1 ) a joi ntreturn h as be enm ad e fo r a t ax ab le y ear; (2) on su ch return the re i s an un 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 s po us e; (3 ) th e reque st in g s po us e d idno t kno w andha d n o re as onto kn ow o f th e un de rs ta te m en t atth e ti m e th e return was si gn ed ; (4 ) ta ki ng in to acco un t al l fa ct s
Sec. 6 01 2( a)(1 ) requi res ev ery in di vi du al who se tax ab le gro ss in co m e 3 equa ls or e xc eed s t he ex em pt io n a m ou ntto fil e a return. Fo r 20 11 th e ex em pt io n am ou ntwas $ 3,7 00 . Peti ti on er an d M rs . Hun te r se parat edinNov em be r 20 11 . The tax ab il it y

of S oc ia l Se cu rit y

be ne fit s i s ca lc ul at edpu rs ua ntto a fo rm ul a se t fo rth insec . 86 . See Mc Ada m s v . Comm is si on er, 1 18 T.C. 37 3, 3 75 -3 76 (20 02 ). Und er s ec. 8 6, i f a t ax pay er’s “ m od ifi edad jus te d g ro ss in co m e”, p lu s o ne ha lf o f th e So ci al Secu rit y

be ne fit s re cei ve d dur in g the tax ab le y ear, ex ceed s t he “ba se am ou nt ”, th ena po rti on of t he So ci al Secu rit y be ne fit s re cei ve d m

us t b e in cl ud ed in th e ta xp ay er’s g ro ss in co m e. See s ec. 8 6( a), (b ), an d (c ). Pur su an t t o s ec. 86 (c)( 1) , si nc e p et it io ne r was m arri edan d re si de d wi th Mrs . Hun te r du rin g p artof 20 11 , pet it io ne r’s ta xabl e So ci al Secu rit y be ne fit s i f a joi ntFed eral in co m e ta x return i s n otfil edare ca lc ul at edby usi ng th e am ou ntby whi ch th e b en efi ts co m bi ne d wi thcert ai n o th er i nc om e ex ceeda ba se am ou ntof z ero rathe r th an $3 2,0 00 if ajoi ntFed eral in co m e ta x re tu rnis fil ed . Duri ng 20 11 pe ti ti on er was pa id$4 3,6 57 inSo ci al Secu rit y di sabi li ty ben efi ts . Reg ard le ss of wh ic h fo rm ul a as setforth insec . 86 is us ed , pet it io ne r’s ta xabl e So ci al Secu rit y in co m e ex ceed ed th e $ 3,7 00 ex em

pt io n a m ou ntan d, the refo re, h e was requi redto fil e a return fo r 20 11 .- 10 -

[* 10 ] an d c irc um st an ces , itis in equi tabl e to ho ldth e reque st in g s po us e li ab le for th aty ear’s d efi ci en cy

intax att rib ut ab le to su ch un de rs ta te m en t; an d (5 ) th e reque st in g s po us e ti m el y ele ct s re li ef u nd er s ect io n 6 01 5( b) . Sec. 6 01 5( b) (1 ). The se co nd it io ns are s ta te d i n the co nju nc ti ve an d, thu s, a fa il ur e to m eetan y on e of th em pre cl ud es th e reque st in g s po us e fro m be in g e nt it le d t o re li ef u nd er s ect io n 60 15 (b ). Altv. Co m

m is si on er, 1 19 T.C. at 3 11 ; M cCl el la ndv. Co m m is si on er, T.C. Mem o. 2 00 5- 12 1, s li p o p. at9. As d is cu ss edsupr a, pe ti ti on er an d M rs . Hun te r m ad e a joi ntreturn fo r th e 20 11 tax ab le y ear. An d t he re i s n o d is pu te th atpe ti ti on er t im el y fil eda reque stfor rel ie f. Howev er, p et it io ne r pl ai nl y can no t s at is fy

th e se co ndco nd it io n u nd er se ct io n 6 01 5( b) . This co nd it io n re qu ire s t he reque st in g s po us e to sh ow tha t the un de rs ta te m en t o f ta x i s at tri bu tabl e to erro ne ou s i te m s o f th e o th er s po us e. Sec. 60 15 (b )(1 )(B) . An “ erro ne ou s i te m ” is “ any it em res ul ti ng inanun de rs ta te m en t o r de fic ie nc y

intax to th e ex te ntth atsu ch it em is om it te d fr om , or i m

pr op erl y rep orte d (i nc lu di ng im

pr op erl y ch arac te riz ed ) on anin di vi du al in co m e ta x re tu rn .” Sec. 1 .60 15 -1 (h )(4 ), In co m e Tax Reg s. Fu rth erm or e, anerro ne ou s i te m is ge ne ral ly attr ib ut edto th e in di vi du al who se act iv it ie s g av e ri se to th e it em . See i d. pa ra. (f) (1 ); s ee al so Agu de lo v. Co m m is si on er, T.C. Mem o. 2 01 5- 12 4, at*1 4;- 11 -

[* 11 ] W ork v . Comm is si on er, T.C. Mem o. 2 01 4- 19 0, at*1 2; sec . 1.6 01 5- 3( d) (2 )(i ii ), In co m e Tax Reg s. Here, the un de rs ta te m en t o f ta x was att rib ut ab le to erro ne ou s i te m s o f pe ti ti on er, n am el y , hi s u nd erre po rte d S oc ia l Se cu rity di sabi li ty inc om e. Becaus e 4 pe ti ti on er h as fai le d t o s at is fy th e se co ndco nd it io n u nd er s ect io n 6 01 5( b) , we ne edno t d eci de whet he r he sat is fie d t he othe r two co nd it io ns un de r se ct io n 60 15 (b ), i.e., wh ethe r he lac ke d t he requi si te kn owl ed ge of t he un de rs ta te m en t an d whe th er equi ty con si de rat io ns fav orhi m . Con se qu en tl y , pet it io ne r is no t en ti tl ed to rel ie f un de r se ct io n 6 01 5( b) . C. Rel ie f Und er Se ct io n 6 01 5( c) Subjec t t o o th er co nd it io ns , sec ti on60 15 (c) a ll ows a di vo rcedor s ep arat ed sp ou se to ele ctto li m ithi s o r he r li ab il it y fora de fic ie nc y

ass es se d wi th res pe ctto a joi ntreturn t o the po rti on of s uc h d efi ci en cy all oc ab le to hi m

or h er u nd er subs ect io n (d ). Pur su an t t o s ect io n 6 01 5( d) (3 )(A), “ an y it em gi vi ng ris e to a de fic ie nc y

on a joi ntreturn s ha ll be all oc at edto in di vi du al s fi li ng th e return i n t he sa m e m an ne r as itwou ldha ve be enall oc at edif t he in di vi du al s h adfil edsep arat e returns forth e ta xabl e y ear.” Furth er, “ [e]rro ne ou s i te m s o f in co m e are all oc at ed Pet it io ne r di d n otad dr es s i n h is pe ti ti on an d a t tria l wh ethe r th e n om in al 4 am ou ntof u nr ep orte d i nt eres t i nc om e was no t at tri bu tabl e to hi m . As a res ul t we de em pe ti ti on er t o h av e co nc ed edth is is su e. See R ul e 3 4( b) (4 ).- 12 -

[* 12 ] to th e sp ou se who was t he so ur ce o f th e in co m e.” Sec . 1.6 01 5- 3( d) (2 ), In co m e Tax Reg s; see als o Ag ud el o v . Comm is si on er, at*1 6. Inth is cas e, whi le pe ti ti on er an d M rs . Hun te r ha ve be endi vo rcedsi nc e Decem be r 20 12 , pet it io ne r was th e so ur ce o f th e err on eo us it em s t ha t l edto th e de fic ie nc y

an d, thu s, the se it em s wo ul d b e al lo cab le to pe ti ti on er i f he an d M rs . Hun te r ha d fi le d s ep arat e returns at t he ti m e. As a re su lt , sec ti on 60 15 (c) a ffo rd s hi m no rel ie f. D. Rel ie f Und er Se ct io n 6 01 5( f) Whe re re li ef i s n otav ai labl e u nd er s ect io n 6 01 5( b) or ( c), s ect io n 6 01 5( f) gr an ts th e Co m

m is si on er the di sc ret io n t o re li ev e a reque st in g s po us e o f joi nt li ab il it y , if, t ak in g i nt o a cco 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 reque st in g s po us e li ab le for th e unp ai d t ax or d efi ci en cy or an y po rti onth ereo f. Add it io na ll y , sec ti on 60 15 (f) au th or iz es gra nt in g s uc h equi tabl e rel ie f “ [u ]nde r pr oc edur es pre sc rib edby the Secr et ary”. Fo r reque st s fil edonor a fte r Sep te m

be r 16 , 20 13 , andforreque st s p en di ng inany Fed eral co urt on or a fte r Sep te m

be r 16 , 20 13 , Rev . Pro c. 20 13 -3 4, 2 01 3- 43 I.R.B. 3 97 , pr es cri be s t he gu id el in es th atth e Co m m is si on er wi ll co ns id er i n d et erm in in g whe th er equi tabl e rel ie f is ap pr op ria te . Alth ou gh we are n otbo un d b y th em , si nc e th is cas e was fil edan d p en di ng aft er Se pt em be r 16 , 20 13 , we wil l an al y ze- 13 -

[* 13 ] pe ti ti on er’s reque stun de r th es e g ui de li ne s t o a sc ert ai n wh ethe r he sat is fie s th e requi rem en ts forrel ie f un de r se ct io n 6 01 5( f). See Ag ud el o v . Comm is si on er, at*1 7- *1 8; W ork v . Comm is si on er, at*2 2. The rev enue pro cedur e b eg in s b y est ab li sh in g t hr es ho ldco nd it io ns th ata reque st in g s po us e m

us t s at is fy

to be eli gi bl e fo r equi tabl e rel ie f. The thr es ho ld co nd it io ns are: (1) th e reque st in g s po us e fi le d ajoi ntreturn fo r th e ta xabl e y ear fo r whi ch rel ie f is so ug ht ; (2 ) rel ie f is no t av ai labl e to th e reque st in g s po us e u nd er se ct io n 6 01 5( b) or ( c); (3) th e cl ai m forrel ie f is ti m el y

fil ed ; (4 ) no ass et s wer e tra ns ferr edbe twee n t he sp ou se s as pa rt o f a fraudul en t s ch em e; (5) th e no nr eque st in g s po us e d idno t tran sf er d is qu al ifi edass et s t o t he reque st in g s po us e; (6 ) th e reque st in g s po us e d idno t kno win gl y pa rti ci pa te inth e fi li ng of afrau du le nt ta x re turn ; an d (7 ) ab se ntcert ai n e nu m erat edex cep ti on s, the tax li ab il it y fro m whi chth e reque st in g s po us e se ek s re li ef i s at tri bu tabl e to anit em of t he no nr eque st in g s po us e. Rev . Pro c. 20 13 -3 4, s ec. 4 .01 , 20 13 -4 3 I.R .B. at 3 99 -4 00 . The se co nd it io ns , li ke th e co nd it io ns un de r se ct io n 6 01 5( b) , are s ta te d i n t he co nju nc ti ve ; thu s, a re qu es ti ng sp ou se m us t s at is fy

all sev enof t he m

be fo re re li ef
m ay be grant ed . Agu de lo v. Co m m is si on er, at*1 8. Pet it io ne r m eet s t he fir stsi x t hr es ho ldco nd it io ns bu t d oe s n otsat is fy th e se ve nt h c on di ti on . Gener al ly, th e in co m e ta x l iabi li ty from whi ch th e reque st in g- 14 -

[* 14 ] sp ou se see ks rel ie f m us t b e at tri bu tabl e, ei th er i n fu ll or i n p art , to anit em of th e n on reque st in g s po us e o r anun de rp aym en t re su lt in g fr om th e n on reque st in g sp ou se ’s in co m e u nl es s a s pe ci fie d e xc ep ti on ap pl ie s. See Rev . Pro c. 20 13 -3 4, se c. 4.0 1( 7) , 20 13 -4 3 I.R .B. at 3 99 -4 00 . If th e li ab il it y is pa rti al ly attr ib ut ab le to th e reque st in g s po us e, th enrel ie f can be co ns id eredon ly for the po rti on of t he li ab il it y attrib ut ab le to th e n on reque st in g s po us e. Id . As ex pl ai ne d s up ra, the en ti re u nd ers ta te m en t atis su e h ere i s at tri bu tabl e to pe ti ti on er, n otMrs . Hun te r. Not withs ta nd in g, the Co m m is si on er m ay

st il l co ns id er g ran ti ng equi tabl e rel ie f to a reque st in g s po us e ev enwher e th e ta x l iabi li ty is at tri bu tabl e in ful l o r in pa rt t o an i te m

of t ha t s po us e if

an y on e o f th e fo ll owi ng ex cep ti on s ap pl ie s: (1 ) at tri bu ti on du e so le ly to the op erat io n o f co m m un it y pro pe rty law, (2 ) no m in al own ers hi p, (3 ) m is ap pr op ria ti on of f un ds , (4) ab us e, an d (5 ) frau d c omm it te d b y th e n on reque st in g s po us e. Id . Inth is cas e, pe ti ti on er d idno t m ak e an y sp eci fic all eg at io ns th athe m eet s an y of t he se ex cep ti on s. Inhi s p et it io n a ndat t ria l p et it io ne r st at edth at un be kn own stto hi m

whenth ey

sep arat edinlat e 2 01 1, M rs . Hun te r wit hd rew al l th e m on ey

fro m th ei r ba nkacco un t, i nc lu di ng pre su m ab ly fun ds th atrep res en te d al l o r so m e o f th e $ 43 ,65 7 i n S oc ia l Se cu rit y di sabi li ty ben efi ts he rece iv ed . Howev er, h e d idno t cl ai m th atsh e was no t en ti tl edto th e fund s i n t he acco un t o r- 15 -

[* 15 ] th atth e fu nd s wer e in te nd edforth e p aym en t o f ta x. Th e m is ap pr op ria ti on of fun ds ex cep ti onap pl ie s o nl y “ [i]f th e reque st in g s po us e d idno t kno w, andha d no reas on to kn ow, tha t fu nd s i nt en de d fo r th e p aym en t o f ta x wer e m is ap pr op ria te d b y

th e n on reque st in g s po us e fo r th e n on reque st in g s po us e’s be ne fit , * * * t o t he ex te ntth atth e fu nd s i nt en de d fo r th e p aym en t o f ta x wer e ta ke n b y th e n on reque st in g s po us e.” Id . (em ph as is ad de d) . There was n o un de rp aym en t o f ta x h ere, b utrathe r anun de rs ta te m en t o f ta x a s re sp on de nt de te rm in edth ro ug h t he de fic ie nc y pro cedur es . Accor di ng ly, th e m is ap pr op ria ti on of fun ds ex cep ti onis in ap pl ic ab le he re, an d p et it io ne r, ha vi ng fai le d t o s at is fy th e th res ho ldco nd it io ns , is no t en ti tl edto rel ie f un de r se ct io n 6 01 5( f). Co nc lu si on Pet it io ne r is no t en ti tl edto rel ie f un de r se ct io n 6 01 5( b) , (c), o r (f) fo r 20 11 . Rel ie f un de r se ct io n 6 01 5 h in ge s o n a tt rib ut in g t he in co m e ta x l iabi li ty whi ch , in th is cas e, as pe ti ti on er ad m it s, i s en ti rel y attrib ut ab le to hi m . Peti ti on er cann otbe gr an te d re li ef u nd er s ect io n 6 01 5 m erel y be cau se hi s fo rm er s po us e ag reedto as su m e res po ns ib il it y

forth e as se ss edde fic ie nc y . Any pa ym en t M rs . Hun te r m ak es with re sp ectto th e as se ss edde fic ie nc y wil l re du ce wh atpe ti ti on er o wes with re sp ectto th e as se ss edde fic ie nc y an d v ic e v ers a. Neve rth el es s, h e is joi nt ly an d s ev eral ly liab le forth e en ti re as se ss edam ou ntof t he de fic ie nc y .- 16 -

[* 16 ] W e h av e co ns id eredall of t he arg um en ts m ad e b y th e p art ie s an d, t o t he ex te ntth ey

are n otad dr es se d h erei n, we fi ndth em to be m oo t, i rrel ev an t, o r witho utm eri t. To re fle ctth e fo reg oi ng , Deci si on wil l b e en te redfor res po nd en t.