- 13 - A. Economic Hardship Petitioner asserts that Ms. Cochran abused her discretion by rejecting his offer-in-compromise because “There is no indication that SO Cochran gave any substantive consideration to petitioner’s demonstrated special circumstances or that he would experience a hardship if required to make a full-payment.” In support of this assertion, petitioner argues Ms. Cochran: (1) Failed to adequately consider his health issues; (2) failed to consider that because of current and future health issues petitioner will retire early, causing his income to decrease; (3) improperly valued petitioner’s real property; and (4) failed to use actual housing and utility expenses to determine his total monthly living expenses. Section 301.6343-1(b)(4)(i), Proced. & Admin. Regs., states that economic hardship occurs when a taxpayer is “unable to pay his or her reasonable basic living expenses.” Section 301.7122- 1(c)(3), Proced. & Admin. Regs., sets forth factors to consider in evaluating whether collection of a tax liability would cause economic hardship, as well as some examples. One example involves a taxpayer who provides full-time care to a dependent child with a serious long-term illness. A second example involves a taxpayer who would lack adequate means to pay his basic living expenses if his only asset was liquidated. The third example involves a disabled taxpayer who has a fixed incomePage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011