- 11 -
The regulation provides that the Commissioner will consider any
information provided by the taxpayer that is relevant to the
determination, including, but not limited to, the taxpayer’s age,
ability to earn, responsibility for dependents, and the amount
reasonably necessary for basic living expenses. See id.
Petitioner argues, without relevant authority or persuasive
reason, that respondent bears the burden of negating petitioner’s
economic hardship claim and that respondent must conduct an
independent investigation into petitioner’s financial affairs.
Respondent argues that an attorney drawing $130,000 a year from
his law firm has sufficient income to meet basic living expenses.
Petitioner did not provide evidence of hardship during
respondent’s decisionmaking process. At trial, petitioner
submitted only his own testimony, in response to leading
questions from his counsel, as to certain of his monthly
expenses. His listed outlays include tax liabilities for prior
years as well as alimony to Ms. Trevino. Petitioner also asserts
that his monthly expenses include payments on a debt to American
Express in excess of $100,000. Petitioner did not provide bills,
bank statements, or other evidence to corroborate his testimony.
He did not provide financial information for his current spouse.
It is unclear whether his outlays are reasonable living expenses
or are simply debts for his prior lifestyle. Overall,
petitioner’s situation is totally dissimilar from other
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011