- 14 -
Proced. & Admin. Regs. Sec. 301.7122-1(b)(3)(i), Proced. &
Admin. Regs. Economic hardship is defined as the inability of
the taxpayer to pay his or her reasonable living expenses. Sec.
301.6343-1(b)(4), Proced. & Admin. Regs.
Factors supporting a determination that collection would
cause economic hardship within the meaning of section 301.7122-
1(b)(3)(i), Proced. & Admin. Regs., include, but are not limited
to:
(A) Taxpayer is incapable of earning a living because
of a long term illness, medical condition, or disability,
and it is reasonably foreseeable that taxpayer's financial
resources will be exhausted providing care and support
during the course of the condition;
(B) Although taxpayer has certain monthly income, that
income is exhausted each month in providing for the care of
dependents with no other means of support; and
(C) Although taxpayer has certain assets, the taxpayer
is unable to borrow against the equity in those assets and
liquidation of those assets to pay outstanding tax
liabilities * * *.
Sec. 301.7122-1(c)(3)(i)(A), (B) and (C), Proced. & Admin. Regs.
Petitioners claim they cannot pay the tax in full because
they have a substantial amount of short-term debt, the expenses
of deferred maintenance on their home, and the need to fund their
retirement savings over a limited number of years. These
circumstances fall short of qualifying as economic hardship
within the meaning of section 301.6343-1(b)(4), Proced. & Admin.
Regs.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011