Francenia M. Griffin - Page 12

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          6015(f) should be granted.  Such factors that may be relevant to            
          whether the Service will grant equitable relief are stated in               
          section 4.03 of Rev. Proc. 2003-61, 2003-32 I.R.B. 296, as                  
               (i) Marital Status.  Whether the requesting spouse is                  
               separated (whether legally separated or living apart) or               
               divorced from the nonrequesting spouse. * * *                          
               (ii) Economic Hardship.  Whether the requesting spouse would           
               suffer economic hardship (within the meaning of section                
               4.02(1)(c) of this revenue procedure) if the Service does              
               not grant relief from the income tax liability.                        
               (iii) Knowledge or reason to know.                                     
                    (A) Underpayment cases.  In the case of an income tax             
                    liability that was properly reported but not paid,                
                    whether the requesting spouse did not know and had no             
                    reason to know that the nonrequesting spouse would not            
                    pay the income tax liability.                                     
                         *    *    *    *    *    *    *                              
                    (C) Reason to know.  For purposes of (A) and (B) above,           
                    in determining whether the requesting spouse had reason           
                    to know, the Service will consider the requesting                 
                    spouse’s level of education, any deceit or evasiveness            
                    of the nonrequesting spouse, the requesting spouse’s              
                    degree of involvement in the activity generating the              
                    income tax liability, the requesting spouse’s                     
                    involvement in business and household financial                   
                    matters, the requesting spouse’s business or financial            
                    expertise, and any lavish or unusual expenditures                 
                    compared with past spending levels.                               
               (iv) Nonrequesting spouse’s legal obligation. Whether the              
               nonrequesting spouse has a legal obligation to pay the                 
               outstanding income tax liability pursuant to a divorce                 
               decree or agreement.  This factor will not weigh in favor of           
               relief if the requesting spouse knew or had reason to know,            
               when entering into the divorce decree or agreement, that the           
               nonrequesting spouse would not pay the income tax liability.           

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Last modified: May 25, 2011