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expenses of $14,648. The expenses included housing and utility
costs of $7,081, attributable to multiple mortgages
overencumbering petitioners’ residence (valued at $900,000 in the
Form 433-A), and life insurance costs of $2,959. The cover
letter explained that the home secured indebtedness obtained to
finance petitioners’ business activities and that the life
insurance on Mr. Cox’s life was a condition for such financing.
The Form 433-B incorporated an attached profit and loss statement
for January through July of 2003 showing total income of $139,261
and expenses of $137,361.10, resulting in net income of
$1,899.90.
Mr. Skidmore reviewed the information submitted and
documented his analysis in extensive notes. By a letter dated
October 31, 2003, he communicated to petitioners his preliminary
conclusions and underlying concerns with respect to current
compliance, to claimed expenses and his inability to reconcile
amounts on the Forms 433 with bank and financial statements
provided, and to collection alternatives. Mr. Planegger spoke
with Mr. Skidmore by telephone on November 10, 2003, and
requested to have until the end of the month to prepare a
response to the letter. Mr. Skidmore indicated that with the
delays to date he was inclined to proceed but would look at
anything received while the case was still in his hands.
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Last modified: May 25, 2011