Question

what term is used to described when the spouse will be unable to pay basic living expenses if relief is not granted

Answer 1

The answer is economic Hardship

The second factor to be considered by the IRS is whether the applicant spouse will suffer economic hardship if there is no equitable relief. Economic hardship exists if the applicant spouse is unable to pay reasonable basic living expenses after payment of all or part of the tax liability. The IRS based its determination on the preceding guidance as to whether the applicant spouse would suffer economic hardship on rules similar to those provided in Regs. Sec. 301.6343-1(b)(4), which contains the preconditions for the release of a lien or levy for economic hardship.