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expenses for food, clothing, miscellaneous items, transportation,
and health care. First, Cochran determined that petitioners were
allowed a food, clothing, and miscellaneous items expense of
$1,020 instead of the $1,271 that they claimed. Cochran stated
that she made this adjustment in accordance with current national
guidelines and that she considered petitioners’ particular
circumstances but that they did not warrant allowing the higher
figure submitted by petitioners. Cochran also reduced
petitioners’ transportation expenses from $1,244 to $902 in
accordance with the applicable guidelines. Finally, Cochran
adjusted petitioners’ allowable health care expenses from the
$1,103 that they claimed on their Form 433-A to $300. Cochran
noted that petitioners had not mentioned any health issues nor
provided any documentation of medical bills. She also commented
that the only health care-related expense that petitioners had
documented was a long-term care insurance policy expense of $182
a month. In sum, Cochran reduced petitioners’ monthly allowable
expenses to $3,755.
Cochran determined that petitioners’ monthly excess income
(i.e., monthly income less monthly expenses) was $796 ($4,551 -
$3,755), that petitioners’ income potential for the next
48 months was approximately $38,208 ($796 x 48 = $38,208),11 and
11 Cochran used a 48-month factor because petitioners were
offering to compromise their tax liability by paying cash. See
(continued...)
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