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298. Rev. Proc. 2003-61, sec. 4.03, contains a nonexhaustive
list of factors that the IRS will consider and weigh when
determining whether to grant equitable relief under section
6015(f): (1) Marital status, (2) economic hardship, (3) whether
the requesting spouse did not know and had no reason to know that
the nonrequesting spouse would not pay the income tax liability,
(4) the nonrequesting spouse’s legal obligation, (5) significant
benefit, (6) compliance with income tax laws, (7) abuse, and (8)
mental or physical health. The Court has reviewed respondent’s
application of these factors to the facts and circumstances of
this case.
1. Marital Status
Respondent will take into consideration whether the
requesting spouse is separated or divorced from the nonelecting
spouse. Rev. Proc. 2003-61, sec. 4.03(2)(a)(i), 2003-2 C.B. at
298.
Dr. Velez was deceased before petitioner’s request for
relief. This factor weighs in favor of relief. See Banderas v.
Commissioner, supra.
2. Economic Hardship
Economic hardship applies if satisfaction of the tax
liability in whole or in part “will cause an individual taxpayer
to be unable to pay his or her reasonable basic living expenses.”
Sec. 301.6343-1(b)(4)(i), Proced. & Admin. Regs. The
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Last modified: March 27, 2008