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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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Last modified: March 27, 2008