- 5 -
In response, petitioners timely filed a Form 12153, Request for
Collection Due Process Hearing. Petitioners requested abatement
of the statutory additions on the basis of reasonable cause and
further requested an offer-in-compromise or, in the alternative,
an installment agreement.
Appeals Officer’s Conclusions
During the Appeals process, the parties conducted a hearing
through written correspondence and telephone conversations. As
requested, petitioners submitted a completed Form 433-A,
Collection Information Statement for Wage Earners and Self-
Employed Individuals. On the Form 433-A, petitioners listed
their assets and included an analysis showing total gross monthly
income of $10,499 (including $500 wages for Catherine) and total
monthly living expenses of $9,611. On the basis of this
analysis, petitioners initially requested an installment
agreement whereby they would pay $750 per month. The Appeals
officer rejected this offer. By letter to petitioners’ counsel
dated August 25, 2003, the Appeals officer stated that on the
basis of the financial information petitioners had submitted, she
had determined that petitioners had “excess monthly income” of
$2,732 per month. The letter also stated that the Appeals
officer had determined that petitioners would need to pay $2,700
per month if they wished to enter into an installment agreement.
The letter further stated: “This amount would allow the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011