- 9 - Mr. Skidmore completed his consideration and calculated monthly net income of $8,550 (total income of $14,457 less allowable expenses of $5,907), for a collection potential from petitioners’ future income over 60 months of $513,000, plus net realizable equity in assets of $34,161. In this computation, Mr. Skidmore allowed only standard housing expenses of $1,299 as documentation relating to the $7,081 was unclear and the cost of maintaining a home was not converted to a business expense merely by use as security for alleged business loans. He also disallowed the life insurance expenses as nothing showed that it was not a personal asset benefiting petitioners and completely under their control. Mr. Skidmore did not find that any collection alternatives were appropriate on the record presented, but he did conclude that the addition to tax for failure to file timely for 1999 should be abated. On November 17, 2003, petitioners sent a letter to Mr. Skidmore responding to the conclusions in his October 31, 2003, letter. Therein they presented further argument regarding compliance, housing expenses, and collection alternatives. They emphasized their alleged efforts to return to compliance, defended their housing costs or alternatively requested a year to modify any expenses deemed excessive, and repeatedly advocated for placement of their accounts in “currently uncollectible status”, acknowledging that neither an installment agreement norPage: 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