Al Sampson - Page 10

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          taxpayer has a “sporadic employment history or fluctuating                  
          income”, then earnings over several prior years should be                   
          averaged.  Id.                                                              
               As the Appeals officer acknowledged, estimating petitioner’s           
          future income is “problematical”.  Petitioner intends to graduate           
          and find work, but it is uncertain when he will graduate, what              
          type of employment he will find, or how much he will earn.  While           
          the IRM addresses situations where the taxpayer is “temporarily”            
          out of work, petitioner has not been employed for several years.            
          Petitioner has a history of sporadic employment and thus is a               
          candidate for income averaging.  See IRM sec. 5.8.5.5(5) (Nov.              
          15, 2004).  Because of his limited earnings, however,                       
          petitioner’s average income over the several years prior to 2002            
          is close to zero.                                                           
               Despite the unusual circumstances of petitioner’s case, the            
          IRM provides the following guidance:                                        
               In some instances, a future income collateral agreement                
               may be used in lieu of including the estimated value of                
               future income in reasonable collection potential (RCP).                
               When investigating an offer where current or past                      
               income does not provide an ability to accurately                       
               estimate future income, the use of a future income                     
               collateral agreement may provide a better means of                     
               calculating an acceptable offer amount. * * *                          
               Example:  A taxpayer is currently in medical school and                
               it is anticipated that upon graduation income should                   
               increase dramatically.                                                 
          IRM sec. 5.8.5.5(6) (Nov. 15, 2004).                                        







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