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eliminating any expense as unnecessary or unsubstantiated,
petitioners had at least $1,378 of monthly income available to
pay their tax liabilities. Additionally, petitioners stated that
the current value of their residence was $280,000, subject to a
$79,000 mortgage, and that they owned other real property valued
at $260,000.
On the basis of the entirety of the record, we conclude that
respondent did not abuse his discretion in determining that
petitioners’ proposed installment agreement did not reflect their
ability to pay. Petitioners’ tax liability, including projected
accruals, would not be fully paid within 5 years under an
installment agreement permitting monthly payments of $700.
Petitioners have sufficient equity in their real property and
other assets to pay the tax liability. Consequently, we are
satisfied that respondent did not abuse his discretion in denying
petitioners’ proposed installment agreement.
This case was set for trial on June 10, 2005. During that
proceeding petitioner gave respondent’s counsel a check for
$4,000, and the parties and the Court agreed to continue the case
until August 30, 2005, to allow petitioner time to attempt to
make arrangements to pay the balance of the tax liabilities for
the years at issue.
4(...continued)
verify to the satisfaction of the IRS the amount claimed as their
monthly expenses.
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