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revised Form 433-A. The offer specialist reduced that amount to
a "quick sale" value4 of $100,000, which she offset with
petitioners' reported $60,000 of indebtedness encumbering the
residence, yielding net realizable equity of $40,000. Similarly,
the offer specialist accepted petitioners' $2,000 estimate of the
value of their two automobiles and discounted it to a $1,600
quick sale value. Overall, the offer specialist's final
computation of petitioners' net realizable equity was $41,600.
With respect to future income, the offer specialist adjusted
petitioners' reported monthly gross income and necessary living
expenses as follows. She increased reported monthly wages by
$412 to reflect the amounts included on petitioners' Forms W-2,
Wage and Tax Statement, for 2001, and added monthly dividend
income of $200 to reflect dividend income reported on
petitioners' 2001 joint Federal income tax return. Thus,
petitioners' gross monthly income was increased from $7,715 to
$8,327.
Regarding monthly necessary living expenses, the offer
specialist followed Internal Revenue Manual (IRM) guidelines and
reduced petitioners' reported monthly transportation expenses
from $680 to $289 and disallowed petitioners' claimed $1,600
monthly expense for credit cards. She also increased
4 Quick sale value is defined as the estimate of the price a
seller could get for an asset in a situation where financial
pressures motivate a sale in a short time, usually 90 days or
less. IRM, sec. 5.8.5.3.1 (Nov. 2000).
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