Kenneth Hawkins - Page 4

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          wife’s physical condition was the statement:  “my wife is                   
          unemployable.  She is on Social Security Disability and earns no            
          income.”  At that time, petitioner’s total outstanding tax                  
          liability had increased to $38,165.32.  Petitioner claimed on the           
          Form 433-A that he had a 25-percent interest in his home and                
          monthly net business income and living expenses of $2,550 and               
          $3,384, respectively.4  On Form 433-A, petitioner explained his             
          home ownership as follows:  “As I borrowed my contribution toward           
          the purchase of the home, and as a result of the fact that my               
          wife’s assets were the basis for the ability to obtain the                  
          mortgage in the first place, my interest in the house is 25%                
          while hers is 75%.”  On June 17, 2002, respondent returned the              
          offer, stating that petitioner did not have any changed                     
          circumstances and that the offer was not materially different               
          from the prior offer.                                                       

               4 The total living expenses for both offers were calculated            
          by petitioner as follows:                                                   
          Expense             First Offer     Second Offer                            
          National standard1            $448              -0-                         
          Housing/utilities             1,000               $2,042                    
          Transportation                ---                 800                       
          Health insurance premium           200            340                       
          Taxes                         ---                 100                       
          Life insurance                   ---               102                      
          Total                         1,648               3,384                     
               1 Includes clothing and clothing services, food,                       
          housekeeping supplies, personal care products and services, and             
          miscellaneous.                                                              






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