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circumstances exist such that collection of the full liability
would undermine public confidence that the tax laws are being
fairly and equitably administered. Speltz v. Commissioner, 124
T.C. 165, 172-174 (2005); sec. 301.7122-1(b)(3), Proced. & Admin.
Regs.
1. Economic Hardship
Factors supporting (but not conclusive of) a determination
that collection would cause economic hardship include, but are
not limited to:
(A) Taxpayer is incapable of earning a living
because of a long term illness, medical condition, or
disability, and it is reasonably foreseeable that
taxpayer’s financial resources will be exhausted
providing for care and support during the course of the
condition;
(B) Although taxpayer has certain monthly income,
that income is exhausted each month in providing for
the care of dependents with no other means of support;
and
(C) Although taxpayer has certain assets, the
taxpayer is unable to borrow against the equity in
those assets and liquidation of those assets to pay
outstanding tax liabilities would render the taxpayer
unable to meet basic living expenses.
Sec. 301.7122-1(c)(3)(i), Proced. & Admin. Regs.
Petitioner does not contend that he has a long-term illness,
medical condition, or disability. Nor does he claim that
borrowing against the equity in his real property interests would
render him unable to meet basic living expenses. Although
petitioner contributes to the support of his family, he has
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Last modified: May 25, 2011