Teresa J. Fox - Page 7

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          4.03, 2003-2 C.B. at 298.  We next consider the factors listed in           
          Rev. Proc. 2003-61, sec. 4.03.                                              
          B.   Factors in Rev. Proc. 2003-61, Sec. 4.03                               
               1.   Whether the Requesting Spouse Is Separated or Divorced            
                    From the Nonrequesting Spouse                                     
               Petitioner’s divorce from Mr. Shattun became final on April            
          22, 2003.  This factor favors petitioner.                                   
               2.   Whether the Requesting Spouse Would Suffer Economic               
                    Hardship If Relief Were Not Granted                               
               The Commissioner considers whether payment of tax would                
          cause economic hardship by applying section 301.6343-1(b)(4)(i)             
          and (ii), Proced. & Admin. Regs., which pertains to levy on a               
          taxpayer’s property.  Generally, the Commissioner considers                 
          economic hardship to be present if payment of tax would prevent             
          the taxpayer from paying his or her reasonable basic living                 
          expenses.  Id.                                                              
               Under the regulation, the Commissioner considers any                   
          information provided by the taxpayer in determining a reasonable            
          amount for basic living expenses, including the following:  (a)             
          The taxpayer’s age, employment status and history, ability to               
          earn, number of dependents, and status as a dependent of someone            
          else; (b) the amount reasonably necessary for food, clothing,               
          housing, medical expenses, transportation, current tax payments             
          or other court-ordered payments; (c) the cost of living in the              
          geographic area in which the taxpayer resides; (d) the amount of            

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