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income, but he noted that 1 Administration, Internal Revenue
Manual (CCH), section 5.5.5.5, at 16,339-7, provides a guideline
to compute future income. The cited section provides for
adjustments when income is expected to increase or decrease.
After considering that overtime pay would result in variable
income, Lin decided to average petitioner’s most recent 5 years
of income to calculate future income. The calculations are set
forth below:
Period Adjusted Gross Income
2001 $98,315.00
2002 100,392.00
2003 100,203.00
2004 100,297.00
2005 107,024.00
Total 506,231.00
Average (annual) 101,246.20
Average (monthly) 8,437.18
Lin further explained that, based on this revised figure for
future income, the RCP was now $56,976. The letter reminded
petitioners that Lin would be rejecting their OICs if they did
not amend their offer to at least pay the RCP.
In a letter dated May 30, 2006, petitioner mailed the
declaration of Dr. Joyce Pickersgill, a forensic economist, to
support petitioners’ position that overtime pay should be
excluded entirely when calculating future income for the purpose
of computing the RCP. Petitioner again referred to “a recent
change in the overtime pay policy of my employer.”
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Last modified: November 10, 2007