Anthony Edward and S.F. O'Connor - Page 8

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          (but not conclusive of) a determination that collection would               
          cause economic hardship include, but are not limited to:                    
                    (A) Taxpayer is incapable of earning a living                     
               because of a long term illness, medical condition, or                  
               disability, and it is reasonably foreseeable that                      
               taxpayer’s financial resources will be exhausted                       
               providing for care and support during the course of the                
                    (B) Although taxpayer has certain monthly income,                 
               that income is exhausted each month in providing for                   
               the care of dependents with no other means of support;                 
                    (C) Although taxpayer has certain assets, the                     
               taxpayer is unable to borrow against the equity in                     
               those assets and liquidation of those assets to pay                    
               outstanding tax liabilities would render the taxpayer                  
               unable to meet basic living expenses.                                  
          Sec. 301.7122-1(c)(3)(i), Proced. & Admin. Regs.                            
               Petitioners contend that Mr. O’Connor’s injuries rendered              
          him permanently disabled.  Although Mrs. O’Connor is able to                
          work, petitioners contend any income she earned likely would be             
          offset by the cost of childcare for their daughter.  Petitioners            
          therefore assert that the rent from the building is their only              
          source of income.                                                           
               Mr. O’Connor testified that he had attempted to borrow                 
          against the equity in petitioners’ properties but was unable to             
          do so.  Mr. O’Connor believes lenders view him as a credit risk             
          because of his inability to work.  Selling the building to pay              
          the tax liabilities, he believes, would prevent petitioners from            
          meeting necessary living expenses.                                          

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