Edward F. Murphy - Page 31

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          review.  See Fed. R. Evid. 403; cf. Olsen v. United States, 414             
          F.3d 144, 155 (1st Cir. 2005).                                              
               Petitioner complains that the records provided by respondent           
          contain no information on national or local living expense                  
          standards.  While that is true, the Internal Revenue Manual,                
          which is available to petitioner on the IRS Web site,9 discusses            
          the national standards, local standards, and other bases for                
          determining allowable expenses when evaluating offers in                    
          compromise.  See, e.g., IRM secs. 5.8.5.5.1 through 5.8.5.5.3               
          (Sept. 1, 2005).  Moreover, as described supra, Ms. Boudreau                
          allowed in full petitioner’s validly claimed expenses.  An                  
          Appeals officer does not abuse her discretion when she allows a             
          taxpayer’s claimed expenses.  See Schulman v. Commissioner, T.C.            
          Memo. 2002-129.  Ms. Boudreau’s testimony describing national or            
          local expense standards is, therefore, irrelevant.  See Fed. R.             
          Evid. 401.                                                                  
               In summary, we shall allow into evidence Ms. Boudreau’s                
          testimony explaining notations and abbreviations in her case                
          activity report and exclude the remainder of her testimony.                 
               D.  Conclusion                                                         
               Respondent’s objection to the admission of petitioner’s                
          testimony is sustained.  Respondent’s objection to the admission            


               9  See supra note 2.                                                   





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