Edward F. Murphy - Page 6

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               By letter dated February 10, 2003, petitioner provided to              
          Ms. Boudreau the last of the information necessary for her to               
          review the offer in compromise.                                             
               By March 19, 2003, Ms. Boudreau had reviewed the offer in              
          compromise and supporting information submitted by petitioner and           
          had concluded that the offer was too low.  By letter dated March            
          19, 2003 (the March 19 letter), Ms. Boudreau informed Mr. Burke             
          that an acceptable offer in compromise would have to be of at               
          least $97,884.  She enclosed copies of the income/expense and               
          asset/equity tables that she used to compute that amount.  Based            
          principally on information provided by petitioner, Ms. Boudreau             
          calculated petitioner’s total monthly income to be $4,235 ($2,618           
          of net business income and $1,617 of pension income) and his                
          necessary monthly living expenses to be $3,107, with a difference           
          of $1,128.  Ms. Boudreau multiplied the difference times 60 to              
          determine the amount petitioner could pay over 60 months; viz,              
          $67,680.  Also based principally on information provided by                 
          petitioner, Ms. Boudreau calculated petitioner’s net realizable             
          equity to be $30,204.  The sum that petitioner could pay over 60            
          months, $67,680, and his net realizable equity, $30,204, is                 
          $97,884 (the amount Ms. Boudreau had identified as an acceptable            
          offer in compromise).  Ms. Boudreau invited petitioner to submit            
          an amended offer in compromise in the amount of $97,884 by April            
          9, 2003.                                                                    






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