- 6 -
Table 3: Analysis of Ability To Pay Tax Liabilities
Petitioner OIC AO
Monthly income $6,334 $6,324 $7,303
Necessary living expenses
National expense 1,037 953 953
Local housing & utilities 1,500 1,500 1,500
Local transportation1 833 353 553
Other allowable expenses
Health care 76 114 114
Taxes 2,088 2,085 2,522
Other - non-priority debt 1,112 -0- -0-
Total expenses 6,646 5,005 5,642
Income available to
pay taxes -0- 1,319 1,661
Realizable equity in assets -0- 4,152 4,152
Reasonable collection
potential2 -0- 83,292 103,812
1 The record does not explain the discrepancy between the
local transportation allowances used by the OIC examiner and
the AO.
2 Reasonable collection potential is calculated by
multiplying petitioner’s monthly income available to pay
taxes by 60 months and adding the realizable equity in
petitioner’s assets to the product.
On February 3, 2006, respondent issued a Notice of
Determination Concerning Collection Action(s) Under Section 6320
and/or 6330. Petitioner filed a timely petition for lien or levy
action (collection action) with this Court.
The Court calendared this case for trial at the trial
session of the Court commencing October 3, 2006, in Los Angeles,
California. Respondent filed a motion for summary judgment on
September 5, 2006. When the case was called from the calendar,
the parties advised the Court that they had reached a basis of
settlement and expected to submit settlement documents within 90
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: March 27, 2008