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4. Petitioner’s Other “Financial Circumstances”
Petitioner argues that pursuant to section 7122(c)(2),
respondent was required to include actual housing and utility
expenses when determining his total monthly living expenses, not
the Internal Revenue Service standard allowances. Section
7122(c)(2) provides that the Secretary shall publish standard
allowances for basic living expenses. The Commissioner may
depart from standard allowances where “such use would result in
the taxpayer not having adequate means to provide for basic
living expenses.” Sec. 7122(c)(2)(B).
Ms. Cochran determined petitioner’s circumstances “[were]
not sufficient to deviate from the local guideline amounts”.
Petitioner did not produce evidence indicating he would not have
adequate means to provide for his basic living expenses. Ms.
Cochran did not abuse her discretion by using standard allowances
instead of petitioner’s actual housing and utility expenses.
Petitioner also asserts Ms. Cochran abused her discretion by
failing to inquire about changes in his financial circumstances
after the offer-in-compromise had been submitted. The record
does not indicate petitioner’s financial situation had
substantially changed from the date the offer was submitted on
March 24, 2000, through the date of its denial on December 16,
2004. Ms. Cochran did not abuse her discretion.
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