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obligation factor weighs in favor of granting relief only if the
taxpayer did not know or have reason to know that, at the time
that the divorce decree or agreement was entered into, the
nonrequesting spouse would not pay the liability and weighs
against granting relief only if the taxpayer has the obligation.
Rev. Proc. 2000-15, sec. 4.03(1)(e), (2)(f), 2000-1 C.B. at 449.
Petitioner argues that the economic hardship factor weighs in
favor of granting her relief. For the reasons discussed below,
the economic hardship factor, the knowledge or reason to know
factor, and the attribution factor weigh against petitioner. The
legal obligation factor would have weighed in petitioner’s favor
but for the facts and circumstances of this case establishing
that she knew or had reason to know that, at the time that the
amended final judgment was filed, intervenor would not pay the
additions to tax and interest. Consequently, the legal
obligation factor is neutral in this case.
Economic hardship is determined by using rules similar to
those under section 301.6343-1(b)(4), Proced. & Admin. Regs., and
generally involves an inability to pay reasonable basic living
expenses. This regulation provides that the Commissioner will
consider any information offered by the taxpayer that is relevant
to the determination, including, but not limited to, the
taxpayer’s age, ability to earn, responsibility for dependents,
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