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Commissioner will determine a reasonable amount for basic living
expenses that will vary according to the unique circumstances of
the individual taxpayer. See Rev. Proc. 2003-61, sec.
4.03(2)(a)(ii), 2003-2 C.B. at 298. (referring to Rev. Proc.
2003-61, sec. 4.02(1)(c) (citing section 301.6343-1(b)(4)(i),
Proced. & Admin. Regs.)).
Petitioner agrees that she would not suffer economic
hardship, as that term is defined in section 301.6343-1(b)(4)(i),
Proced. & Admin. Regs., if she were required to pay the joint tax
liability. Petitioner, however, citing Washington v.
Commissioner, 120 T.C. 137 (2003), takes the position that
respondent’s use of that regulation to determine economic
hardship is itself an abuse of discretion.
Petitioner, it seems, has misread Washington. The Court in
Washington recognized that the Commissioner has adopted
guidelines “As directed by section 6015(f)” to use when
considering whether a taxpayer qualifies for relief under that
provision. Id. at 147. The Court in fact used the
Commissioner’s guidelines1 in reviewing the Washington case. See
1Rev. Proc. 2003-61, 2003-2 C.B. 296, supersedes Rev. Proc.
2000-15, 2000-1 C.B. 447, as used in Washington v. Commissioner,
120 T.C. 137 (2003). The guidelines set forth in Rev. Proc.
2003-61, supra, are effective for requests for relief filed on or
after Nov. 1, 2003, and for requests for relief pending as of
Nov. 1, 2003, for which no preliminary determination letter was
issued as of Nov. 1, 2003. Rev. Proc. 2003-61, sec. 7, 2003-2
C.B. at 299.
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