- 11 -
Proced. & Admin. Regs. Unique circumstances do not include the
maintenance of an affluent or luxurious standard of living.
There is no indication on the record that petitioner lives
an extravagant lifestyle. Petitioner, however, has offered no
evidence that payment of the deficiency, in part or in full,
would cause him financial hardship. This is a neutral factor.
3. Knowledge or Reason To Know
Actual knowledge of the item giving rise to the deficiency
is a strong factor weighing against relief. Rev. Proc. 2003-61,
sec. 4.03(2)(a)(iii)(B). Petitioner agrees that he had actual
knowledge of the distribution.
4. Nonrequesting Spouse’s Legal Obligation
This factor weighs in favor of the requesting spouse where
the nonrequesting spouse has a legal obligation to pay the
outstanding income tax liability pursuant to a divorce decree or
an agreement. Id. sec. 4.03(2)(a)(iv). The Decree of
Dissolution of Marriage entered by the Superior Court of Arizona
is silent as to the treatment of any potential income tax
deficiency from joint returns filed by petitioner and Ms.
Valentine. Petitioner has offered no evidence to show that Ms.
Valentine has a legal obligation, pursuant to other agreement, to
pay the 1999 tax deficiency. This is a neutral factor.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011