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Expense item Monthly expense
Food, clothing, misc. $2,011
Housing and utilities 1,156
Transportation 1,212
Health care 1,130
Taxes (income and FICA) 817
Court ordered payments 364
Life insurance 100
Other expenses 429
Total 7,219
The transportation expense included the cost of gas to and from
Mr. Hubbart’s medical treatments, described below. The court-
ordered payments represented an installment agreement with the
State of California Franchise Tax Board to resolve petitioners’
outstanding State tax liabilities. The other expenses
represented attorney’s fees petitioners paid to Ms. Merriam’s law
firm in connection with the present litigation.
In the letter explaining the offer amount, petitioners
stated that they were offering to pay $60,400:
for all Hoyt-related years, 1981 through 1996, to be
paid in ninety days from the acceptance of the offer.
* * * We have attached an estimate [of the tax due] *
* * It does not include any penalties, including the
tax motivated transaction interest penalty or failure
to pay penalty.
The letter also included “medical and retirement considerations”
and a “retirement analysis”. Petitioners’ medical and retirement
considerations included: (1) Petitioners were retired; (2) Mrs.
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Last modified: May 25, 2011