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2003-61, sec. 4.03, 2003-2 C.B. at 298, contains a nonexhaustive
list of factors that the IRS will consider and weigh when
determining whether to grant equitable relief under section
6015(f). The factors and the Court’s analysis with respect to
each factor are described below.
Marital Status
The IRS will take into consideration whether the requesting
spouse is separated or divorced from the nonrequesting spouse.
Rev. Proc. 2003-61, sec. 4.03(2)(a)(i), 2003-2 C.B. at 298.
Petitioner was divorced from Mr. Nakasu when she filed her
request. This factor weighs in favor of relief. See McKnight v.
Commissioner, T.C. Memo. 2006-155 (stating that divorce weighs in
favor of relief under Rev. Proc. 2003-61); see also Beatty v.
Commissioner, T.C. Memo. 2007-167 (stating that remaining married
or residing together is a neutral factor under Rev. Proc. 2003-
61); cf. Butner v. Commissioner, T.C. Memo. 2007-136 (stating
same under Rev. Proc. 2000-15).
Economic Hardship
Petitioner contends that she is unable to pay the tax
liability because she has incurred substantial credit card debt
to cover their living expenses while her second husband was
unemployed on account of an illness. Petitioner also testified
that she pulled the equity out of her homes to cover their
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