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compromise, petitioners' future income was $2,713 for 48 months,3
or $130,224. In a letter to her dated May 14, 2002, Mr. Lemann
responded:
It seems to me that the future income calculation
overlooks two important facts:
1. I am now 60 years of age and may very well not
have 4 more years of productivity;
2. Converting that future income potential into a
$130,224.00 lump sum is impossible given my
financial circumstances.
The offer specialist's notes record that she received this
letter on May 21, 2002, and that on May 23, 2002, she discussed
with Mr. Lemann the special circumstances that would give rise to
a departure from the standard computation of future income and
gave examples. The offer specialist's notes further record that
Mr. Lemann did not provide her with any information that
constituted special circumstances.
On May 24, 2002, the offer specialist forwarded her final
computations of petitioners' reasonable collection potential to
the Appeals officer. In computing petitioners' net realizable
equity in assets, the specialist accepted petitioners' $125,000
estimate of the value of their residence as reported on their
3 Under Internal Revenue Manual (IRM) guidelines, for
purposes of evaluating "cash" offers-in-compromise such as
petitioners', future income for 48 months is considered, whereas
future income for 60 months is generally used when deferred
payment offers-in-compromise (which may include both a lump-sum
payment and an installment agreement) are evaluated. IRM, sec.
5.8.5.4 (Nov. 2000).
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