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$82,009 to $193,241 to reflect the amount outstanding on the
first and second mortgages; (2) respondent included the quick-
sale value of the 1997 Ford Expedition ($6,120) instead of the
fair market value petitioners reported; and (3) respondent did
not include the reported value of petitioners’ personal effects.
Respondent did not include the value of Mr. Carter’s pension but
instead used the pension as a source of future income, as
described below. Respondent concluded that petitioners had a
total net realizable equity of $218,267.
Using Mr. Carter’s Form W-2, Wage and Tax Statement, from
2003, respondent adjusted Mr. Carter’s gross monthly income
upward to $4,941. Based on representations made by petitioners,
respondent determined that Mr. Carter would retire in February
2008 and thus included 41 months of Mr. Carter’s monthly wages in
calculating the amount collectible from future income.10 Based
on the information petitioners provided, respondent determined
that upon retirement Mr. Carter would receive $5,170 per month
from his pension. Thus, respondent included 45 months of Mr.
Carter’s pension in calculating the amount collectible from
future income.
10 Respondent determined that there were 86 months left on
the collection statute, and thus used 41 months of petitioners’
preretirement income and 45 months of petitioners’ postretirement
income to calculate the amount collectible from future income.
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Last modified: May 25, 2011