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unreliable.
Next, petitioner argues that the third factor of economic
hardship, the inability-to-borrow factor, is relevant to his
situation. See supra p. 14. Citing 1 Administration, Internal
Revenue Manual (CCH), sec. 5.8.11.2.1, at 16,385-5, petitioner
alleges that the existence of the Federal tax lien makes it
impossible to borrow against his home because “in today’s
financial market credit scoring is everything.” The only
evidence that petitioner offers is Washington Mutual’s general
policy:
Federal tax liens do not subordinate to any other
liens.
If the transaction is a refinance and the
applicant has entered into a repayment agreement,
the lien (which is also evidenced in the title
report) must be paid in full at closing.
At the section 6320 hearing, the Appeals officer stated
that respondent would be willing to sign a certificate of
subordination to subordinate the lien to a new lender. Financing
could be available in this situation. Most importantly,
petitioner has not shown that the lien affected his ability to
borrow, or that he has attempted to borrow only to be thwarted by
the existence of the lien. Therefore, it appears that petitioner
had sufficient equity in his home against which he could borrow.
In sum, without more specific evidence of petitioner’s
wife’s condition, respondent could not make any findings as to
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