- 11 - earnings is evident. Petitioner’s forgone earnings presumably depend on the type of employment he could obtain, which in turn depends on factors such as his work experience, job skills, and the strength of the labor market. There is no indication the Appeals officer considered these factors or attempted to calculate petitioner’s forgone earnings.4 Rather, it appears the Appeals officer assumed that petitioner would earn sufficient income, after allowable expenses, to pay his tax liability in full. Petitioner’s history of intermittent employment and modest wage income raises doubts about the validity of this assumption. Furthermore, it is unclear whether the Appeals officer considered that petitioner might have increased expenses if he discontinued his studies, such as student loan repayments. We conclude the Appeals officer abused his discretion in rejecting petitioner’s OIC on the ground that petitioner had sufficient future income to pay his 2002 tax liability in full. We therefore shall remand this matter to the Appeals Office for reconsideration of petitioner’s OIC. 4 As mentioned supra, the Appeals officer prepared an income projection based on petitioner’s 2002 gross income of $38,686. After petitioner explained that he had received a car as part of a sales promotion, however, it appears the Appeals officer acknowledged the income projection was inaccurate. There is no indication the Appeals officer prepared a revised income projection.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011