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However, the notice of determination stated in pertinent
part:
Mr. Beatty is self-employed, yearly household income
fluctuates to some extent. Current expense information
was gathered from an interview as well as from a check
spread performed using 2000 bank records. Income in-
formation was derived from tax returns filed for 2001.
(The most recent return filed) Comparison of monthly
household income to monthly basic living expenses indi-
cates that the Beattys are having financial difficul-
ties. This is also evident from the bankruptcies that
have been filed. The question is not whether hardship
exists, but whether a hardship will be created if inno-
cent spouse relief is not granted. In this case, hard-
ship already exists and will continue to exist whether
or not relief is granted to Mrs. Beatty. The two still
live in the same household so even if [she] is
relieved, Mr. Beatty’s liability will impact on the
family’s ability to pay personal living expenses. This
condition is not met. [Reproduced literally.]
As we understand it, the Appeals Office concluded in the
notice of determination that the economic hardship factor weighed
against granting petitioner relief under section 6015(f) because
6(...continued)
provided respondent with no evidence of this economic
hardship. * * * Whether she is jointly liable for the
income tax or not does not affect her economic
situation: she does not have any economic
responsibilities.
* * * * * * *
* * * Accordingly, petitioner will not experience
economic hardship if relief is not granted. * * *
Respondent’s administrative record with respect to
petitioner’s taxable years at issue belies respondent’s position
on brief about the economic hardship factor. As quoted below,
the notice of determination, which was based upon that record,
also belies that position.
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Last modified: November 10, 2007