123 T.C. No. 15
UNITED STATES TAX COURT
BRADLEY M. AND MONICA PIXLEY, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 7093-02L. Filed September 15, 2004.
H is an ordained Baptist minister. In this
proceeding to collect Ps’ unpaid 1992 and 1993 tax
liabilities by levy, Ps submitted to R’s Appeals Office
an offer in compromise, claiming a “tithe to church” as
part of their necessary living expenses. In evaluating
Ps’ ability to pay their outstanding tax liabilities,
the Appeals officer declined to take these alleged
tithing expenses into account.
Held: Under relevant provisions of the Internal
Revenue Manual, tithes that a minister is required to
pay as a condition of employment are allowable in
determining ability to pay outstanding tax liabilities.
Held, further, because Ps failed to substantiate that H
was employed as a Baptist minister after R initiated
the collection proceedings, the Appeals officer did not
abuse his discretion by declining to take into account
Ps’ alleged tithing expenses. Held, further, the
disallowance of Ps’ alleged tithing expenses for this
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