Alfred A. Diffee, Jr. and Norma J. Diffee - Page 3




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               Petitioners submitted information requested by Officer                 
          Clark.2  On their Form 433-A, petitioners reported the following            
          total income and total living expenses:                                     
          Total income                       Total living expenses                    
          Source      Gross           Expense items        Actual                     
          monthly                     monthly                                         
          Wages            $2,700.00  Food, clothing, misc.        $904               
          Net rental          250.00  Housing and utilities       1,004               
          Pension/Social              Transportation                814               
          Security        2,152.83                                                    
          Total         5,102.83      Health care                   700               
                                      Taxes (income and FICA)     1,100               
                                      Total                       4,522               
               Officer Clark made several adjustments to petitioners’ total           
          income and total living expenses reported on their Form 433-A.              
          First, Officer Clark increased petitioners’ wage income to                  
          $3,4323 using Norma J. Diffee’s (Mrs. Diffee) pay statement for             
          the period ending April 22, 2006.  Second, he decreased                     
          petitioners’ housing and utilities to $932, the maximum allowed             
          under the national standards.  Third, Officer Clark reduced                 
          petitioners’ transportation expense to $500, which reflected                
          their monthly motorcycle payment and operating expenses for the             




               2We cannot determine from the record whether petitioners               
          provided proof of estimated payments for 2005 and 2006.                     
               3Officer Clark determined this amount by dividing Mrs.                 
          Diffee’s total earnings for the first 16 weeks of 2006 by 16                
          weeks and then multiplying that number by 52 weeks.  The total              
          was divided by 12 months to yield petitioners’ monthly wage                 
          income.  We calculated that the monthly wage income is $3,433               
          after rounding.                                                             






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