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determining whether an installment agreement will facilitate
collection of the liability. This Court has previously upheld the
Commissioner’s determinations based in part on the provisions of
the IRM. See, e.g., Orum v. Commissioner, 123 T.C. 1, 13 (2004)
(upholding the Commissioner’s determination because of the
taxpayers’ failure to timely provide requested information
regarding their current financial condition in accordance with IRM
guidelines), affd. 412 F.3d 819 (7th Cir. 2005); McCorkle v.
Commissioner, T.C. Memo. 2003-34 (the taxpayer was not current in
her filing and paying obligations, and therefore the Commissioner
under the IRM guidelines rejected her proposed installment
agreement); Schulman v. Commissioner, T.C. Memo. 2002-129
(upholding settlement officer’s proposed monthly installment
agreements computed under IRM guidelines).
When determining whether a taxpayer’s proposed installment
agreement will facilitate collection of the liability under
section 6159, the Internal Revenue Service makes a financial
analysis of the taxpayer’s monthly income and expenses and the
taxpayer’s ability to pay. See Schulman v. Commissioner, supra.
We have previously held that consideration of a taxpayer’s ability
to pay is reasonable in the Commissioner’s determination of
whether a proposed installment agreement is acceptable. See id.
In determining the amount taxpayers are able to pay, the IRS
allows taxpayers to claim certain expenses to offset their income.
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