Catherine Rosenthal - Page 18

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          evidence to establish that she did not significantly benefit.”              
          We disagree.                                                                
               First, significant benefit and lack of economic hardship are           
          separate and distinct negative factors.  Pursuant to Rev. Proc.             
          2000-15, section 4.03(2)(c), the existence of the former requires           
          evidence that “[t]he requesting spouse significantly benefitted             
          (beyond normal support) from the unpaid liability or items giving           
          rise to the deficiency.”  In contrast, economic hardship exists             
          if the requesting spouse, in the absence of relief from the                 
          liability, is unable to pay his or her customary “reasonable                
          basic living expenses.”  Sec. 301.6343-1(b)(4), Proced. & Admin.            
          Regs.8                                                                      
               As to whether petitioner enjoyed a significant benefit,                
          there is no evidence that petitioner received any benefit from              
          either the unpaid tax liability or the proceeds of the IRA                  
          distribution.  She did not learn of the distribution, which                 
          occurred sometime in 1996, until April 1998.  After Louis’s                 
          death, she tried, unsuccessfully, to locate those funds.                    
          Moreover, she discharged the tax liability resulting from the IRA           
          distribution, plus interest thereon, with borrowed funds that she           
          had deposited in her own separate bank account.  Nor is there any           


               8  Rev. Proc. 2000-15, sec. 4.02(1)(c), 2000-1 C.B. at 448,            
          provides, in pertinent part, that “the determination of whether a           
          requesting spouse will suffer economic hardship * * * will be               
          based on rules similar to those provided in sec. 301.6343-1(b)(4)           
          of the Regulations on Procedure and Administration.”                        




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