- 14 -
utilities. See 2 Administration, Internal Revenue Manual (CCH),
sec. 5.15.1.3.2.2 (2), at 17,657 (“Taxpayers will be allowed the
local standard or the amount actually paid, whichever is less”).
The settlement officer allowed $400 of medical expenses on
the basis of average monthly premiums, copays, and miscellaneous
medical supplies or needs. Petitioners claim that $695 in
medical expenses should have been allowed, which amount they
claim to be their “actual out-of-pocket health insurance, copays,
things like that.” However, it is clear that the settlement
officer did not accept those additional amounts, because
petitioners provided no substantiation. See 2 Administration,
Internal Revenue Manual (CCH), sec. 5.15.1.3(8)(a), at 17,655:
“A taxpayer is required to provide evidence and justification for
claimed expenses, except National Standards”.9 Petitioners
presented no evidence at trial or on brief to otherwise
substantiate their expenses.10 We hold that the settlement
9See also sec. 301.6330-1(e)(1), Proced. & Admin. Regs.:
“Taxpayers will be expected to provide all relevant information
requested by Appeals, including financial statements, for its
consideration of the facts and issues involved in the hearing.”
10At trial, Mr. Schulman testified:
Q Mr. Schulman, did you ever provide Ms. Wastian any
evidence of your medical expenses?
A Yes. They’re on a schedule.
Q But did you provide them to her when you conferred
with her?
(continued...)
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011