TAX COURT OPINION

Case: Yesmin D Arevalo Deanda, Petitioner, and Braulio Deanda, Intervenor
Docket Number: 14924-11
Judge: Kroupa
Opinion Type: bench
Filed: 03/12/2013
Pages: 7

UNITED STATES TAX COURT WASHINGTON, D.C. 20217 YESMIN D. AREVALO DEANDA, Petitioner, and BRAULIO DEANDA, Intervenor, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. ) ) ) ) ) ) ) ) ) ) ) ) ) O R D E R Docket No. 14924-11 Pursuant to Rule 152(b), Tax Court Rules of Practice and Procedure, it is ORDERED that the Clerk of the Court shall transmit to petitioners and to respondent a copy of the pages of the transcript of proceedings of this case before Judge Diane L. Kroupa in San Francisco, California on February 28, 2013, containing her oral findings of fact and opinion rendered at the trial session at which this case was calendared. In accordance with the oral findings of fact and opinion, an appropriate decision will be entered for petitioner. (Signed) Diane L. Kroupa Judge Date: Washington, DC March 12, 2013 SERVED MAR 132013 Capital Reporting Company Yesmin D Arevalo Deanda 02-28-2013 1 3 1 Bench Opinion by Judge Diane L.' Kroupa 2 Feb. 28, 2013 3 Yesmin D Arevalo Deanda, etitioner, and Braulio 4 Deanda, Intervenor v. Comnissioner 5 Docket No.14924-11 6 THE COURT: The Court has decided to render 7 oral findings of fact and·opinion in this case, and 8 9 the following represents the Court's oral findings of fact and opinion. These oral findings of fact and 10 opinion shall not be relied upon as precedent in any 11 other case. 12 This bench op1nlon 1s made pursuant to the 13 authority granted in section 7459(b) and Rule 152. 14 All section references are to the Internal Revenue 15 Code in effect at all relevant times, and all rule 16 references are to the Tax Court Rules of Practice & 17 Procedure. 18 Petitioner, with the assistance of Monique 19 Inciarte, an interpreter appeared pro se. 20 Intervenor also appeared pro se. Matthew Williams 21 appeared on behalf of Respondent. 22 FINDINGS OF FACT AND OPINION 23 The record establishes the following facts. 24 Petitioner resided in Cakifornia when she filed the 25 petition. Petitioner moved to the United States from (866) 448 - DEPO www.CapitalReportingCompany.com 2013 Capital Reporting Company Yesmin D Arevalo Deanda 02-28-2013 1 Colombia and married Intervenor after meeting him on 2 the internet. Petitioner!and Intervenor are now 3 divorced. 4 5 Petitioner has a high school education and has one minor dependent. Petitioner earns 6 approximately $1300 a month as a preschool teacher 7 while attending school. Petitioner's basic monthly 8 living expenses exceed he monthly income. 9 Petitioner has a restraln1ng order against Intervenor 10 11 12 for certain domestic abuse. Petitioner filed her own separate individual income tax return for 2008 and 2009, the 13 years at issue. Subsequently, Petitioner and 14 Intervenor filed amended joint income tax returns for 15 the years at issue. Respondent determined 16 underpayments in Petitioner's and Intervrnor's income 17 18 tax for the years at issue. The underpayments for the years at issue are solely attributable to 19 Intervenor. 20 Petitioner requested relief from joint and 21 several liability from the underpayments for the 22 years at issue under section 6015. Petitioner failed 23 to timely respond to certain requests for information 24 Respondent made. Consequently, Respondent issued 25 Petitioner a determination notice denying the (866) 448 - DEPO www.CapitalReportingCompany.com 2013 Capital Reporting Company Yesmin D Arevalo Deanda 02-28-2013 1 2 requested relief under section 6015. Respondent initially denied her relief because she did not 3 provide the necessary documents. Petitioner filed a 4 petition with this Court challenging Respondent's 5 determination. Intervenor then filed an intervention 5 6 notice . 7 case was set for trial during the 8 Court's February 25th, 2013, trial session in San 9 Francisco, California. Respondent now has 10 determined, based on documentation Petitioner 11 provided to Respondent, that Petitioner is entitled 12 to relief from joint and several liability under 13 section 6015(f) for the underpayments for the years 14 at issue. Intervenor disputes that Petitioner is 15 entitled to relief from j int and several liability. 16 Instead, he asserts that he and he are liable for the underpayments. 17 18 OPINION 19 Petitioner and Intervenor agree that they had an 20 underpayment for each year at issue. Petitioner and 21 Intervenor dispute, however, whether Petitioner is 22 entitled to relief under subsection (f) of section 23 24 6015. We now turn to that issue. We begin with general principles of joint 25 returns. Married taxpayers may elect to file a (866) 448 - DEPO www.CapitalReportingCompany.com 2013 Capital Reporting Company Yesmin D Arevaló Deanda 02-28-2013 federal joint income tax return pr his or her in 6 spouse. Sec. 6013 (a). Each spouse fil ng the return is jointly and severally liable for the entire tax shown on the return or otherwise determined to be due. Sec. 6013 (d) (3); Cheshire v. Commissioner, 115 TC 183, 188 (2000), affd. 282 F.3d 326 (5th Cir. 2002). A taxpayer may be entitled to relief from the joint and several liability that arises from a 1 2 3 4 5 6 7 8 9 10 joint return under section 6015 in certain 11 situations. Relief under subsection (f) applies if, 12 13 14 15 16 17 taking into account all of the facts and circumstances, it would be inequitable to find the requesting spouse liable . The Commissionér has outlined procedures for determining whether a requesting spouse qualifies for equitable relief under section 6015(f). See Rev. 18 Proc. 2003-61, 2003-2 CB 296. 19 The requesting spouse must meet seven 20 threshold conditions beföre the Commissioner will 21 22 23 consider a request for rèlief. Rev. Proc. 2003-61; sec. 4.01, 2003-2 CB at 297. Equitable relief will ordinarily be granted 24 if the requesting spouse fulfills all three 25 conditions of a safe harbor the Commissioner has (866) 448 - DEPO www.CapitalReportingCompany.com 2013 Capital Reporting Company Yesmin D Arevalo Deanda 02-28-2013 7 1 established. See Gonce v. Commissioner, TC Memo 2 2007-328; Billings v. Commissioner, TC Memo 2007·-234; 3 Rev. Proc. 2003-61, sec. 4.02, 2003-2 CB at 298. 4 5 Respondent has determined that Petitioner is entitled to relief under section 6015(f) We agree. 6 We found Petitioner's testimony credible and 7 8 9 Intervenor's testimony not credible. We find that Intervenor is liable for the underpayments at issue. The underpayments for the years at issue were solely 10 attributable to Intervenor. The record also reflects 11 that Petitioner meets the threshold conditions and 12 meets the safe harbor conditions. We are also 13 persuaded that Petitioner would suffer economic 14 hardship if relief is not granted. 15 Finally, the record reflects that 16 Petitioner has a restraining order against Intervenor 17 for domestic abuse. We ho'ld that Petitioner is 18 entitled to relief under section 6015 (f) with respect 19 to the underpayments for the years at issue. 20 To reflect the foregoing, decision will be 21 entered for Petitioner and an appropriate order will 22 be issued. 23 24 25 This concludes the Court's oral findings of fact and opinion in this case. (Whereupon, at 9:55 a.m., the above- (866) 448 - DEPO www.CapitalReportingCompany.com 2013 Capital Reporting Company Yesmin D Arevalo Deanda 02-28-2013 entitled matter was concluded.) 8 (866) 448 - DEPO www.CapitalReportingCompany.com 2013 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25