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petitioner, in view of her low income, is faced with financial
hardship in paying the taxes and interest assessed on the
deficiencies for 1995 and 1996, she should consider submitting to
respondent an offer in compromise based on inability to pay and
requesting the abatement of interest on the deficiencies.
Respondent also contends that petitioner was not eligible to
claim head of household filing status in 1996. Section 2(b), in
relevant part, defines a head of household as an unmarried
taxpayer who maintains as her home a household which constitutes
for more than one-half of the taxable year the principal place of
abode of her daughter. Sec. 2(b)(1)(A)(i). The taxpayer is
considered as maintaining a household only if over half of the
cost of maintaining the household is furnished by the taxpayer.
Sec. 2(b)(1). "The expenses of maintaining a household include
property taxes, mortgage interest, rent, utility charges, upkeep
and repairs, property insurance, and food consumed on the
premises." Sec. 1.2-2(d), Income Tax Regs. Based on the
evidence, we find that petitioner paid more than one-half of the
above expenses. Accordingly, we hold that petitioner is entitled
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