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petitioner’s testimony to be convincing, because, according to
her testimony, she was unaware that there was a tax due and owing
for 1998. At the very least, petitioner knew that failure to
timely file a return would result in penalties and additions to
tax. There is nothing in the record to indicate that petitioner
had reason to believe the tax liability or penalties for 1998
would be paid at the time the return was filed. The Court
concludes, on the record, that petitioner knew or had reason to
know that the tax liability for 1998 would not be paid at the
time the return was filed.
A taxpayer might experience economic hardship if he or she,
as a result of being held liable for a tax liability, would be
unable to pay basic reasonable living expenses. Sec. 301.6343-
1(b)(4)(i), Proced. & Admin. Regs. On the record of this case,
petitioner has not shown to the Court’s satisfaction that she
would experience economic hardship if she were forced to pay the
tax liability for 1998.
Because petitioner does not qualify for relief under Rev.
Proc. 2003-61, sec. 4.02, the Court next considers whether she is
entitled to relief under Rev. Proc. 2003-61, sec. 4.03, which
provides factors to be considered as to requests for relief under
section 6015 for spouses who filed a joint return and do not
qualify for relief under Rev. Proc. 2003-61, sec. 4.02. Rev.
Proc. 2003-61, sec. 4.03(2)(a), 2003-2 C.B. at 298, offers a
nonexclusive list of factors to be considered, including: (1)
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