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employment status and history, ability to earn, and number of
dependents; (2) the amount reasonably necessary for food,
clothing, housing, medical expenses, transportation, current tax
payments, alimony, child support, or other court-ordered
payments, and expenses necessary to the taxpayer’s production of
income; (3) cost of living in the geographic area where the
taxpayer resides; (4) the amount of property exempt from the levy
that is available to pay the taxpayer’s expenses; (5) any
extraordinary circumstances; and (6) any other factor that the
taxpayer claims bears on economic hardship and brings to the
Commissioner’s attention. Sec. 301.6343-1(b)(4)(ii), Proced. &
Admin. Regs.
b. Petitioner’s Income and Expenses
In recommending that petitioner not be granted relief under
section 6015(f), the Appeals officer said that petitioner had
$1,764 of disposable income per month in 2001, and that her
income had increased since then. That amount roughly equals the
excess of petitioner’s monthly income (including child support)
in 2001 of $4,184 over the six monthly expenses petitioner listed
on May 31, 2001.
Respondent concluded that petitioner’s living expenses are
much lower than they actually are, apparently by erroneously
assuming that the six expenses petitioner listed in 2001 were her
only expenses. Respondent did not consider several additional
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