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provides that the Commissioner will consider, inter alia, the
taxpayer’s age, employment status and history, ability to earn,
and number of dependents, and any other factor that the taxpayer
claims bears on economic hardship and brings to the attention of
the Commissioner. We believe these provisions envision
consideration of a taxpayer’s pension needs where appropriate.
In 2003, petitioner was around age 45, had three children, and
had a modest income. Under these conditions, we believe that she
has a reasonable need to retain her modest retirement account.6
d. Conclusion
Petitioner and intervenor owed about $110,000 in tax,
penalties, and interest in May 2005, a very substantial sum given
her financial situation. We conclude that this factor favors
petitioner.
6 In George v. Commissioner, T.C. Memo. 2004-261, we said
the taxpayer could liquidate part of her IRA to pay taxes.
George is distinguishable from the instant case because the
taxpayer in that case had no expenses for dependents and would
have had about $100,000 in her IRA after paying tax of about
$200,000. Petitioner’s modest pension fund could be completely
liquidated if it were used to pay the tax owed.
Shanbaum v. United States, 32 F.3d 180 (5th Cir. 1994),
holding that an ERISA pension is not exempt from levy, has no
bearing here because the Government’s authority to levy is not at
issue.
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