Gary W. McDonough - Page 16

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         indicating petitioner’s present or future medical expenses will              
         cause him to be unable to pay his basic living expenses.  As to              
         petitioner’s asserted increasing expenses due to health problems,            
         Ms. Cochran determined that “the taxpayer failed to document                 
         economic hardship” and the present offer “must be considered                 
         within the framework of present facts”.                                      
              Petitioner reported monthly medical expenses of $1,747 on               
         his Form 433-A, which Ms. Cochran accepted.  Petitioner did not              
         report or substantiate future amounts of increased medical                   
         expenses.  Given the information presented to her, it was not                
         arbitrary or capricious for Ms. Cochran to ignore speculative                
         future medical costs when making her final determination.                    
         Therefore, this Court rejects petitioner’s assertion that Ms.                
         Cochran failed to consider his current and future medical costs.             
               Petitioner also asserts that Ms. Cochran abused her                    
         discretion by using a longer period (116 months) for evaluating              
         income from future earnings when petitioner stated he would                  
         retire early because of health problems.  Although petitioner                
         stated he may retire, he did not state that he would retire by a             
         certain date or that there was a mandatory retirement age.                   
              Even when a 48-month period is used to determine future                 
         earnings, petitioner’s income potential of $151,872 still exceeds            

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Last modified: May 25, 2011