Martin and Sharon Smith - Page 9




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          and 64 years old, respectively.  Driver made the following                  
          calculation in determining that petitioners’ net realizable                 
          equity in assets was $161,844:                                              
          Assets and Liabilities Reported on Form 433-A                               
               IRAs:                                                                  
               Vanguard                    25,529                                     
               Zurich                      31,161     56,690                          
               Stock of GE/Motorola                      8,165                        
          Home                         160,648                                        
               Less mortgage loan balance   103,982     56,666                        
          121,521                                                                     
          Other Assets                                                                
               IRA:  Indianapolis Life                  138,823                       
               Lots in Apache and Pima Counties          21,500                       
           40,323                                                                     
               Net realizable equity in assets         161,844                        
          1 This amount equals 70 percent of the $55,462 balance                      
               in this account as of Sept. 30, 2004.                                  
          2 This amount equals $1,300 less than the total assessed                    
               values of these lots.                                                  
          Driver calculated petitioners’ reasonable collection potential to           
          be $161,844, the same amount as their net realizable equity in              
          assets; in other words, Driver determined that petitioners had no           
          disposable income.                                                          
               On January 26, 2005, Appeals issued petitioners the notice             
          of determination sustaining the proposed levy as to 1984, 1985,             
          1986, and 1991.  The notice reflects Driver’s conclusion that               
          petitioners’ offer of $11,552 was inadequate under the applicable           
          guidelines and that the proposed levy balances the need for the             






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