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requesting spouse knew or had reason to know that the reported
liability would be unpaid at the time the return was signed;
(3) the requesting spouse significantly benefited (beyond normal
support) from the unpaid liability; (4) the requesting spouse
will not suffer economic hardship if relief is denied; (5) the
requesting spouse has not made a good faith effort to comply with
Federal income tax laws in the tax years following the tax year
to which the request for relief relates; and (6) the requesting
spouse has a legal obligation pursuant to a divorce decree or
agreement to pay the unpaid liability. No single factor is
determinative, and the list is not exhaustive. See Washington v.
Commissioner, supra at 148; Jonson v. Commissioner, supra at 125.
Respondent argues that petitioner is not eligible for relief
because the negative factors in favor of not granting relief
under section 6015(f) outweigh the positive factors in favor of
relief. Specifically, respondent contends that petitioner would
not suffer economic hardship absent relief and that the tax
liabilities are attributable to his income. Respondent further
argues that petitioner’s claim that he did not know or had no
reason to know that the tax liabilities stated on the return
would not be paid upon filing is not credible.
Economic Hardship
Economic hardship is determined based on rules similar to
those under section 301.6343-1(b)(4)(ii), Proced. & Admin. Regs.
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Last modified: May 25, 2011