Gary W. McDonough - Page 13

                                       - 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 income            

Page:  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