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regardless of whether the factor is listed in Rev. Proc. 2003-61,
sec. 4.03.
1. Marital status. This factor weighs in favor of relief
if the requesting spouse and the nonrequesting spouse are
divorced, legally separated, or living apart. Petitioner and Mr.
Hopkins are married but have lived separately since December
1996. This factor weighs in favor of granting relief.
2. Economic hardship. A taxpayer might experience
economic hardship if he or she is unable to pay basic reasonable
living expenses. Sec. 301.6343-1(b)(4)(i), Proced. & Admin.
Regs. It is the taxpayer’s burden to show both that the expenses
qualify and that the expenses are reasonable. Monsour v.
Commissioner, T.C. Memo. 2004-190. Petitioner has provided no
evidence that she will be unable to pay basic living expenses if
she is held liable for the deficiency. This factor weighs
against granting petitioner relief.
3. Knowledge or reason to know. In a situation where a
liability has not been paid and the requesting spouse did not
know or have reason to know that the nonrequesting spouse would
not pay the liability, this factor would weigh in favor of
granting relief. Rev. Proc. 2003-61, sec. 4.03(2)(a)(iii). The
liabilities reported on the returns for tax years 1995 and 1996
resulted from both petitioner’s and Mr. Hopkins’s incomes. At
the time the returns were filed, petitioner knew that they could
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Last modified: November 10, 2007