- 12 - 4. Compliance With Tax Laws Petitioner complied with Federal income tax laws after 1999, the last year in issue. This factor is neutral. 5. Economic Hardship A factor treated by the Commissioner as weighing in favor of relief under section 6015(f) is that paying the taxes owed would cause the requesting spouse to suffer economic hardship. Rev. Proc. 2000-15, sec. 4.03(1)(b), 2000-1 C.B. at 448. The Commissioner considers the taxpayer to suffer economic hardship if paying the tax would prevent the taxpayer from paying reasonable basic living expenses. Sec. 301.6343-1(b)(4)(i), Proced. & Admin. Regs.; Rev. Proc. 2000-15, secs. 4.02(1)(c) and 4.03(1)(b), 2000-1 C.B. at 448-449. Respondent determined that petitioner failed to allege that economic hardship would arise if she were denied relief. Petitioner did not allege in her request for innocent spouse relief, at trial, or in her opening brief that she would suffer economic hardship if denied relief. Petitioner’s first and only mention of economic hardship is in her reply brief, where she states: “It is simply baffling that respondent cannot determine for itself that petitioner would suffer economic hardship if relief from joint and several liability is not granted when it was garnishing $557.45 from her paychecks leaving her a paltry $356.55 for two (2) weeks take home pay.” While the garnishmentPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: November 10, 2007