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or substantiate any of the expenses that they claimed on the
statement available to respondent. We agree with respondent.
Sections 301.6320-1(e)(1) and 301.6330-1(e)(1), Proced. &
Admin. Regs., require that “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.” (Emphasis added.) IRM sec. 5.15.1.1(8) (2004)
requires financial statements reviewed for purposes of determining
the viability of proposed installment agreements to be no more
than 12 months old. As we have repeatedly observed, petitioners
did not meet this requirement. The Appeals officer properly
requested a new or updated financial statement, but petitioners
did not comply with that request. Respondent, thus, did not have
any basis other than the previous evaluation on which to consider
petitioners’ proposed installment agreement. In the previous
evaluation of the financial statement, the revenue agent
disallowed many of petitioners’ claimed expenses because they did
not conform with the expenses allowable under the provisions of
the IRM. Had respondent relied upon the financial statement, he
would have reached the same conclusions as the previous evaluation
for the taxable years 1997-99. As a result, respondent did not
abuse his discretion in following the applicable procedures using
the only information provided to him, which justifiably led to the
same conclusions as those reached in the hearing for the taxable
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