William H. and Jo Anne Lindley - Page 20

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          supporting information, it was not arbitrary or capricious for              
          Mr. Owens to use national and local standards in determining                
          petitioners’ allowable housing and utilities expense, including             
          the second mortgage expense.                                                
                    b.   Food, Clothing, etc. Expense                                 
               Mr. Owens used national standards for a family of 1 to                 
          determine petitioners’ allowable food, clothing, etc. expense.              
          Petitioners argue that Mr. Owens abused his discretion by using             
          the standard for a family of 1 instead of a family of 4.  As                
          described above, petitioners did not show they would be unable to           
          provide for basic living expenses if only allowed the national              
          and local standards.  Mr. Owens’s use of such standards was not             
          arbitrary or capricious.  However, Mr. Owens erred by using the             
          national standard for a family of 1.  Mr. Owens acknowledged his            
          mistake and testified that he should have used the national                 
          standard for a family of 4, which was $1,564.                               
                    c.   Other Expenses:  Son’s Education Expense                     
               Mr. Owens disallowed petitioners’ other expenses, which                
          included $309 per month for their son’s private education.  IRM             
          section 5.8.5.5.3(6) states that “Expenses for dependents to                
          attend * * * private schools are not allowed unless the                     
          dependents have special needs that cannot be met by public                  
          schools.”  Petitioners presented no information to indicate their           







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Last modified: May 25, 2011