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is legally separated from the nonrequesting spouse, or is not a
member of the same household at anytime during the 12 months
prior to the request for relief, is not satisfied in this case.
The other two criteria are in dispute. They are (1) whether, on
the date the requesting spouse signed the joint return, she had
no knowledge or reason to know that the nonrequesting spouse
would not pay the income tax liability and (2) that the
requesting spouse would suffer economic hardship if relief is not
granted.
Rev. Proc. 2003-61, sec. 4.03, 2003-2 C.B. at 298-299,
provides a nonexclusive list of factors that may be considered in
determining whether, taking into account all of the facts and
circumstances, it would be inequitable to hold a taxpayer such as
Mrs. Chou liable for any part or all of the unpaid liability. No
single factor is determinative. Respondent concedes that
Mrs. Chou has made a good faith effort to comply with the income
tax laws in the years following the years in issue, which is one
of the factors favoring relief. Respondent argues, however, that
factors weighing against relief in this case include lack of
economic hardship, knowledge or reason to know that the taxes
would not be paid, and significant benefit (beyond normal
support) from the unpaid tax liability. Respondent asserts that
the remaining factors (that Mrs. Chou was still married to
Mr. Chou, the absence of abuse, and the absence of any mental or
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