Donald Ertz - Page 20

                                       - 20 -                                         
          his income and therefore concluded that petitioner could not fund           
          the offer-in-compromise with future income until the mortgage on            
          his home was paid off.11  Given her acceptance of the medical               
          expenses as reported and her conclusion that petitioner would not           
          have future income to fund the offer-in-compromise until the                
          mortgage on his home was paid off, we reject petitioner’s                   
          assertion that Ms. Cochran failed to consider petitioner’s and              
          Mrs. Ertz’s age, health, retirement status, and current medical             
          costs.                                                                      
               Petitioner’s argument is also unavailing with regard to the            
          likelihood of future increases in medical and housing costs.                
          Petitioner did not inform Ms. Cochran with any specificity that             
          he would have to pay a greater amount of unreimbursed medical               
          expenses in the future, or that his housing expenses would                  
          increase.  Instead, he made general assertions about the increase           
          of medical costs as people age and about the need for some                  
          seniors to seek in-home care or nursing home care or to make                
          their house handicapped accessible.                                         
               As reflected in the notice of determination, Ms. Cochran               
          took into consideration the information petitioner presented but            

               11  While Ms. Cochran determined that petitioner could not             
          otherwise fund the offer-in-compromise with future income, she              
          determined that there was an “amount collectible from retired               
          debt”.  Because petitioner’s mortgage would be paid off within 4            
          years, Ms. Cochran determined that the amount of the monthly                
          mortgage payment, less the deficit between income and expenses,             
          could then be applied to petitioner’s outstanding tax liability.            




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