Patricia H. Devlin - Page 6




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          1999.  At the time petitioner signed the 1999 return, she knew              
          that Collins’s business was in financial difficulty and had been            
          unable to cover expenses.  She also was aware that Collins                  
          personally spent more money than he made in 1999.  Petitioner               
          testified that, at the time she signed the 1999 return, she did             
          not know how Collins could afford to pay the outstanding tax                
          liability reported on the return.  Petitioner has not shown that            
          it was reasonable to rely on Collins to pay the tax due for 1999.           
               The third criterion under section 4.02 of Rev. Proc. 2003-61           
          is that the requesting spouse will suffer economic hardship if              
          relief is not granted.  Economic hardship for these purposes is             
          defined as the inability to pay reasonable basic living expenses            
          if the requesting spouse is held liable for the tax owed.  See              
          sec. 301.6343-1(b)(4), Proced. & Admin. Regs.  On the Form 12510,           
          she reported monthly income in excess of monthly expenses.                  
          Petitioner has not shown that she will suffer economic hardship             
          if relief is not granted; thus, the third criterion is not met.             
               Rev. Proc. 2003-61, section 4.03, 2003-2 C.B. at 298,                  
          provides an alternative test for equitable relief if a taxpayer             
          does not meet the requirements of Rev. Proc. 2003-61, section               
          4.02.  Rev. Proc. 2003-61, section 4.03, lists several relevant             
          factors that the Commissioner considers and weighs in making a              
          determination about whether section 6015(f) relief should be                
          granted.  Those factors include:                                            







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