Emily Velez - Page 13




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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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