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second offer was inadequate.
Petitioner argues that respondent’s haste in filing the
notices of lien shows that respondent was predisposed to reject
petitioner’s second offer. Respondent, however, filed the
Federal tax lien 1 week after petitioner’s second offer was
returned, and we are not persuaded that in doing so respondent
failed to properly consider petitioner’s second offer or abused
his discretion in any other manner.
Amongst petitioner’s numerous arguments only one has any
potential for success--his allegation that he was suffering from
economic hardship when he submitted the second offer. Petitioner
relies on the internal revenue manual to support his position
that even if he has the ability to pay the liability, an offer-
in-compromise may be accepted if he suffers from economic
hardship. See 1 Administration, Internal Revenue Manual (CCH),
sec. 5.8.11.2.1, at 16,385-5. Factors related to economic
hardship may include: (1) Long-term illness, medical condition,
or disability may render the taxpayer incapable of earning a
living, (2) the taxpayer may have a set monthly income and no
other means of support, and the income is exhausted each month
Less: Expenses (3,384)
Disposable income (276)
Multiple x 48
Value of income (13,248)
Reasonable collection 36,045
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