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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
follows:
(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