Amy H. O'Brien - Page 15

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          amount of discretionary expenditures shown by the Form 433-A and            
          the bank statements is unexplained and leaves the record                    
          ambiguous as regards petitioner’s basic living expenses or her              
          ability to meet them.                                                       
               Similarly, the record contains no evidence of any illness,             
          medical condition, or disability that would render petitioner               
          incapable of earning a living or would exhaust all of her                   
          financial resources.  Although on brief petitioner references               
          uninsured medical expenses incurred in 2002, such uncorroborated            
          information never raised in the administrative proceeding falls             
          short of revealing any abuse of discretion.  See Magana v.                  
          Commissioner, 118 T.C. 488, 493 (2002) (considering “only                   
          arguments, issues, and other matters that were raised at the                
          collection hearing or otherwise brought to the attention of the             
          Appeals Office”).                                                           
               Turning to petitioner’s assets, we note at the outset that             
          no dispute between the parties exists as to whether the trust is            
          reachable for collection of petitioner’s Federal tax liabilities.           
          Further, this view would appear to accord with relevant                     
          authorities.  State law determines the existence of property                
          rights to which Federal tax consequences, such as a tax lien, may           
          then attach.  Aquilino v. United States, 363 U.S. 509, 512-514              
          (1960); Magavern v. United States, 550 F.2d 797, 800 (2d Cir.               
          1977).  As this Court has recognized, the court in In re                    






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