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living expenses. The determination of the amount of
such basic living expenses will be founded upon an
evaluation of the individual facts and circumstances
presented by the taxpayer’s case. To guide this
determination, guidelines published by the Secretary on
national and local living expense standards will be
taken into account. [Sec. 301.7122-1T(b)(3)(ii),
Temporary Proced. & Admin. Regs., 64 Fed. Reg. 39024
(July 21, 1999).]
The regulation provides that the guidelines are to be taken
into account. When the Appeals officer reviewed petitioners’
offers, he decided to use the guidelines because he thought
petitioners’ actual figures were too low. In that regard, there
is no specific explanation why the Appeals officer believed that
petitioners’ monthly expenses of $3,989 was too low or why the
guideline figure of $4,644 was more accurate. The use of the
guideline expense figure resulted in a $136 shortfall in
petitioners’ capability to meet the $100-monthly installment to
satisfy the $2,400 compromise. If petitioners’ submitted monthly
expenses of $3,989 had been used, there would have been a $619
surplus of income over expenses that would have enabled
petitioners to meet the $100-monthly installment to satisfy the
compromise.
In essence, the Appeals officer decided that petitioners
could not live less expensively than the national average
(guidelines). We find it curious that the Appeals officer relied
on petitioners’ figures for their vehicle and for their income,
but chose not to use petitioners’ figures for their monthly
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