Henry M. Lloyd - Page 55




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               Example: The taxpayer may pay off an auto loan 24                      
                         months from the date the offer is accepted.                  
                         This would increase the monthly future income                
                         by the amount of the loan payment.  Child                    
                         support payments may stop before the future                  
                         income period is complete because the child                  
                         turns a certain age.  It is expected that                    
                         these retired payments would increase the                    
                         taxpayers [sic] ability to pay.                              
               Note:     Inclusion of retired debt should not be added                
                         automatically in the calculation of the rea-                 
                         sonable collection potential (RCP).  The                     
                         Offer Investigator should use judgment in                    
                         determining whether inclusion of the retired                 
                         debt is appropriate based on the facts of the                
                         case; such as special circumstance or Effec-                 
                         tive Tax Administration (ETA) situations.  In                
                         all instances, the case histories should be                  
                         documented to support the inclusion and/or                   
                         exclusion of the retired debt.                               
               (5) Some situations may warrant placing a different                    
                    value on future income than current or past income                
                    indicates:                                                        

























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