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Regs. Petitioner has not alleged that denial of her request for
relief would result in economic hardship. She is gainfully
employed and has no dependents to support. The Court fails to
see, and petitioner has not established, that she would suffer
economic hardship if her request for relief from joint liability
were denied.
As to the third factor, as discussed earlier, petitioner had
actual knowledge that intervenor was making early IRA
withdrawals. Therefore, petitioner knew when she signed her
joint return for the year at issue that there was an
understatement of tax since these withdrawals were not included
as income. Rev. Proc. 2003-61, specifically states that actual
knowledge by the requesting spouse of the item giving rise to the
deficiency is a strong factor weighing against relief. This
strong factor may only be overcome if the factors in favor of
equitable relief are particularly compelling.
The fourth and sixth factors are neutral. There was no
legal obligation on either party to pay for the liability for the
year at issue, and there is no evidence that petitioner either
failed to comply with or fully complied with tax obligations.6
6In determining whether petitioner complied or failed to
comply with tax obligations, the Court notes that petitioner did
not allege she suffered any abuse, mental or physical, from
intervenor. In addition, petitioner presented no evidence that
she was in poor mental or physical health either when she signed
the return or when she filed her request for relief.
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Last modified: May 25, 2011