- 5 - that the IRS could not accept the OIC because: (1) Petitioner’s OIC computation reduced his income available to pay taxes by his credit card payments, and (2) petitioner had the ability to pay the full liability over time. The AO offered an installment agreement as a collection alternative, with monthly payments designed to pay the entire liability. The proposed installment amount was $800 per month for 2006 and $1,210 per month beginning in January, 2007. Petitioner rejected the installment agreement, asserting that he could not afford the proposed monthly payments. On October 7, 2005, the AO wrote petitioner a letter explaining his determination and enclosed an installment agreement form. The AO determined petitioner’s income history as follows: Table 2: Income Earned by Year Tax Year Income 2000 $88,804 2001 80,004 2002 68,985 2003 77,635 2004 87,637 Petitioner, the OIC examiner, and the AO analyzed petitioner’s income, expenses, and ability to pay his taxes as follows:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: March 27, 2008