T.C. M em o . 2 0 2 0 -1 2 3

UNITED STATES TAX COURT

KENNETH GUSTAF SW ANBERG, Pet i t i o ner v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 1 0 2 66 -1 9 L. Fi l edAu gu s t 2 5 , 2 0 2 0
.

Ken n et h Gu s t af Swan b erg , p ro s e. St ep hen C. W el k er an dBart ho l o m ew Ci ren za, fo r res p o n d en t.

M EM ORANDUM OPINION LAUBER, J u d g e: Inth is co l l ect i o n du e p ro ces s (CDP) cas e, p et it i o n er
s eek s rev i ew p u rs u an tt o s ect i o n 6 3 3 0 (d )(1 ) 1 o f t h e d et erm i n at i o n b y th e In t ern al

1 Al l s t atut o ry

referen ces are t o th e In t ern al Rev en u e Co de i n effect atal l rel ev an t t i m es , an d al l Ru l e referen ces are t o the Tax Co urtRu l es o f Pract ice an d Pro cedure. W e ro u n d al l m o n et ary am o u n t s t o th e n eares td ol l ar.- 2
-

[* 2 ] Rev enu e Serv i ce (IRS o r res p o n d en t ) t o up h o l da n o t i ce o f i n t en tt o l ev y . Th e IRS p ro p o s edth e l ev y t o faci l i t at e co l l ect i o n o f p et it i o n er’ s Fed eral i n co m e t ax l i ab i l i ty fo r 2 0 1 3 . Res p on d en t h as m o v edfo r s umm ary ju d g m en tu n der Ru l e 1 2 1 , co n ten d in g th atth ere are n o d i s p u t ed i s s u es o f m at eri al factan dth ath i s d et erm i n at i o n t o s u s t ai n the p ro p o s edco l l ect i on act i o n was p ro p er as a m at t er o f l aw. Pet i t i o ner u rg es th atth e s et t l em en to ffi cer (SO) erred i n (1 ) d ecl i n in g t o o ffs etag ai n s th i s 2 0 1 3 t ax l i ab i l i ty al l eg ed o v erp aym en tcred i t s fro m o th er y ears an d (2 ) d et erm in i ng h is el i g i b i l it y fo r an i n s t al l m en tag reem en t(IA). W e co n cl u d e t h at p et i t i o n er h adn o av ai l ab l e cred i t s fro m o th er y ears an dth atth e SO d i dn o t ab u s e h er d i s cret i o n i n cal cu l at i n g h i s ab il i ty t o p ay . W e wi l l th us g ran tres p o n d en t ’ s
m o ti o n an ds u s t ai n th e co ll ect i o n act i on fo r 2 0 1 3
. Back gro u n d Th e fo l l o w i n g fact s are b as edo n th e p art i es ’ p l ead i n g s an dm o t i o n p ap ers , i n cl u d i n g th e at t ach edd ecl arat i o n s an dex h i b i t s . See Ru l e 1 2 1 (b ). Pet i t i o n er res i dedi n Vi rg i n i a wh en h e fi ledh i s p et i t i o n . Pet i t i o ner fi l eda retu rn fo r 2 0 1 3 b u tfai l edt o p ay i n fu l l th e t ax s h own as du e. Th e IRS as s es s edthe res u l t i n g l i ab i l i ty , wh ich p et i t i on er d idn o t p ay up o n
n o t i ce an dd em an d . OnJ u l y 1 3, 2 01 7 , i n an effo rtt o co l lectth i s u np ai d l i ab i l i t y , th e IRS i s s uedh i m a Let t er 1 1 , No t i ce o f In t en t t o Lev y an dNo ti ce o f Yo u r Ri g h t- 3
-

[* 3 ] t o a Heari n g. As o f t h atd at e, p et i t i on er’ s o u t st an d in g l i ab i l i ty fo r 2 0 1 3 was $ 2 0 ,5 7 7
. Pet i t i o ner t i m el y

s ub m i t t edFo rm

1 2 1 5 3 , Req u es tfo r a Co l l ect i o n Du e Pro ces s o r Equ i v al en tHeari n g . He s tat edth ath e co u ldn o t p ay th e b al an ce an d
ex p res s edi n t eres t i n an o ffer-i n -co m p ro m i s e (OIC) o r IA. He al so as s ert edth at th e p ro p o s edl ev y

was p rem atu re, al l eg i n g t h atthe IRS h adfai l edt o ad ju s th i s t ax l i ab i l i t i es fo r o ther t ax y ears g o i n g b ackt o 2 0 0 0 . He d i dn o tch al l en g e t h e l i ab i l i t y
as rep o rt edo n h i s 2 0 1 3 ret u rn . Th e cas e was as si g nedt o an SO i n th e IRS Ap p eal s Offi ce i n Ho l t sv i l l e, New Yo rk
. Sh e rev i ewedp et i t i o ner’ s ad m i n i s trat i v e fi le an d co n fi rm edth atth e 2 0 1 3 l iab i l i ty

h adb een p ro p erl y

as s es s edan dth atal l o th er req u i rem en t s o f ap p l i

cab l e l aw an dad m i n i s trat i v e p ro cedu re h adb een m et . Th e SO ex am i n edp et i t i o ner’ s acco u n ttran s cri pt s fo r 2 00 0 an dth e o th er y ears fo r wh ich h e al l eg edo u t s t an d

i n g cred i t s . Th e t ran s cri p t s s ho wedwh at ad j u s tm en t s h ad b een m ad e, wh ere al l p aym en t s h adb een ap p l i ed , an dth atn o av ai l ab l e cred i tex i s t ed
. OnOct o b er 3 0 , 2 01 8 , th e SO s en tp et i t io n er a l et t er s ch edu l i n g a t el ep h o n e
co n feren ce fo r No v em

ber 2 8 , 2 0 1 8 . Th e l et t er i n s tru ct ed h i m t o co m p l et e Fo rm 4 3 3 -A, Co l l ect i o n In fo rm at i o n St at em en tfo r W ag e Earn ers an d Sel f-Em pl o y ed In d i v i du al s , an dFo rm

6 56 , Offer i n Co m

p ro m i s e, i f h e wi s h edth e SO t o co n s i d er- 4
-

[* 4 ] co l l ect i o n al t ern at i v es . Sh e at t ach edt o h er l et t er co p ies o f p et i ti o ner’ s
acco u n t tran scri p ts fo r t he y ears fo r wh i ch h e al l eg ed o verp aym en tcred i t s . Th e h eari ng was h el das s ch edu l edo n No v em ber 2 8 , 2 0 1 8 . Adv ert i n g t o p et i t i o n er’ s t ran s cri p t s , th e SO ex p l ai n edth at h e o n ce h ada cred i ti n h is 2 0 0 0
acco u n t bu tthati t h ad b een ap p l i edt o o th er y ears an d was n ot av ai lab l e t o b e carri ed t o 2 0 1 3 . Pet i t io ner i n s i s t edth at th e IRS h adm ad e erro rs wi th res p ectt o th o s e i n t erv en in g y ears , b u tth e SO ex p l ai n edth atthe o n l y y ear b efo re h er was 2 0 1 3 . Pet i t i o n er s t at edth ath e h adfew as s et s an dwas wo rk in g o n l y p art t im e. Th e SO rep l i edth ath e co u l d req u es ta co l l ect i o n al t ern at i v e b u th e n eed edt o p ro v id e fi n an ci al i n fo rm at i o n . OnM arch 1 2 , 2 0 1 9 , th e SO recei v eda Fo rm 4 3 3 -A o n wh i ch p et it i on er rep o rt edm o n th l y

i n co m e o f $ 6 ,3 5 2 (co n s i s t i n g o f wag es , So ci al Secu ri ty i n co m e,
an d p en s i o n p aym en t s ) an dm o n th l y ex p en s es o f $ 6 ,8 54 . Pet i t i on er’ s b an ks t at em en t s s h owedth ath e was al s o recei v i n g d i sab i l i ty b en efi t s fro m

th e Vet eran s Ad m i n i s trat i o n (VA b en efi t s ), an dth e SO ad ju s t ed h i s m o n th l y

i n co m e up w ardt o
acco u n t fo r t h em . Sh e d i s al l o weda $ 6 0 0 m o n th l y ex p en s e fo r a wh o l e l i fe i n s u ran ce p o l icy

an dad ju s t edd o wn ward p et i t i o n er’ s rep o rt edex p en s es fo r fo od , h o u s i n g , an d o th er i t em s . Sh e cal l edp et i t i o n er t o ex p l ai n h er cal cu l at i o n s an dreq u es t edad di t i o n al s ubs t an t i at i o n o f cert ai n ex p en s es .- 5
-

[* 5 ] Pet i t i o ner ret u rn edth e SO’ s cal l , co n ten d i n g th ath i s VA b en efi ts s ho u l db e
ex cl u d edfro m

th e co m p u t at i on . Th e SO rep l i edth atVA b en efi t s , wh il e ex cl u d

ab l e fro m t ax ab l e i nco m e, were n ev ert h el es s rel ev an ti n d et erm i n in g ab i l i ty t o p ay . Aft er al l o wi n g ad di t i o n al i t em s p et i t i o ner h ads ub s t an t i at ed , i n cl u d i n g ex p en s es fo r h i s s on ’ s m ed i cal care, t h e SO cal cu l at edm o n th l y i n co m e o f $ 7 , 7 6 8 an d
m o nt h l y ex p en s es o f $ 5,0 2 7, y i el d i n g an ab i l i ty t o p ay $ 2,7 4 1 p er m on th
. Th e SO ex p res s edwi l li n g n es s t o co ns i d er an IA cal l i n g fo r m o n th ly p ay m en t s o f $ 2 ,7 4 1 , n o t i n g th atp et i t i o n er’ s t ot al o u t s tan d i n g t ax l i ab i l i t i es fo r al l
o p en t ax y ears ex ceed ed$ 1 26 ,0 0 0 . Pet i t i o n er d i sp u t edth atfi g ure, rei t erat i n g h i s
co n ten t i o n th atth e IRS h adm ad e erro rs i n co m p ut i ng h i s t ax fo r p ri or y ears . Th e SO rem i n d edh i m

th ats h e co u ldco n s i d er l iab i li ty d i s p u t es reg ard in g 2 0 1 3 o n l y . Aft er t h e cal l s h e s en tp et i t i o n er an o th er s eto f acco u nttran scri p t s an d a t ab l e
s h o wi n g h er cal cu l at i o n o f h is m o n th l y i n co m e an dex p en s es . OnM ay 3 , 2 0 1 9 , p et it i o n er cal l edth e SO, rei t erat i n g h i s co n t en t i o n th atth e VA b en efi t s s h o u l db e i g n o redan dques t i o n i n g t h e d i s al l o w an ce o f ex pen s es fo r l i fe i n s u ran ce an dh i s s o n ’ s m ed i cal care. Th e SO rep l i ed th atwh o l e l i fe i n s u ran ce p aym en t s were n o tal l o wab l e i n th e ab i l i ty -t o-p ay cal cu l at i o n an d t h ath er cal cu l at i o n s al read y

refl ect ed th e co s to f h i s s o n ’ s m ed i cal care. Pet i t i o n er ag ai n as s ert edth ath i s acco u nttran s cri p t s were i n co rrect . Th e SO o ffered t o an s wer qu es -- 6
-

[* 6 ] t i on s ab o u t th em

b u trei t erat edth at s he co u ldco n s id er l i ab il i ty d is p u tes fo r 2 0 1 3 o n l y , ad v i si n g h i m

t o s eekh el p fro m

th e Tax p ay er Ad v o cat e Serv ice reg ard i n g o th er y ears . Th e SO o ffered an IA wi th m o n th l y p aym en t s o f $ 2 ,4 7 1 , ad v is i n g th ati f p et i t i o n er d ecl i n edth ato ffer, s h e wo u l d cl o s e t h e cas e. He d ecl i nedth ato ffer. OnM ay 1 4 , 2 0 1 9 , th e IRS i s s ued p et i t io n er a n o t i ce o f d et erm i nat i o n s u s t ai n i n g th e l ev y . Pet i t io ner fi l eda t i m el y p et i t io n i n wh i ch h e d i sag reedwi th th e SO’ s res o l u t i o n o f t h e i s s u es d is cu s s edab ov e. 2 OnFeb ru ary 1 3 , 2 0 2 0 , res p o n d en t fi led a m o t i o n fo r s u m

m ary ju d g m en t , t o wh i ch p et i t i o ner t i m el y res p o n d ed
. Di s cu ss i o n A. Su m

m ary J u dg m en tSt an d ard Th e p u rp os e o f s u m

m ary ju d g m en t i s t o ex p ed it e l i t i g at i o n an d av o i dco st l y , t i m e-co n s u m i n g , an du n n eces s ary tri al s . Fl a. Peach Co rp . v . Co m m i s si on er, 9 0 T.C. 6 7 8 , 6 8 1 (1 9 8 8 ). Un d er Ru l e 1 2 1 (b ), we m ay g ran ts u m

m ary ju d g m en twh en th ere i s n o g enu i n e d i s p u te as t o an y m at eri al factan da d eci s i o n m ay b e ren d ered
as a m at t er o f l aw. Su n d s tran dCo rp . v . Co m m i s s io n er, 9 8 T.C. 5 1 8, 5 2 0 (1 9 9 2 ),

2 In h i s h eari n g req u es t p et i t i o n er h ad ex p res s edi n t eres ti n an OIC, b u th e n ei th er s ub m i t t ed Fo rm

6 5 6 n o r m ad e an o ffer. See Reed v . Co m m i s s i o n er, 1 4 1 T.C. 2 4 8 , 2 5 4 (2 0 1 3 ) (“ At ax p ay er m u st p ro p o s e an OIC fo r i tt o b e co n s i d ered du ri n g th e co l l ect i o n h eari n g .”), s up p l em en t edb y T.C. M em o. 2 0 14 -4 1 . W e acco rd i n g l y ad dres s thati s s u e n o fu rt h er.- 7
-

[* 7 ] aff’ d , 1 7 F.3 d9 65 (7 th Ci r. 1 9 9 4 ). In d eci d i n g wh et h er t o g ran ts u m m ary ju d g m en t , we co n s tru e fact ual m at eri al s an di n feren ces drawn fro m th em i n th e l i gh t m o s tfav orab l e t o th e n o n m o v i n g p art y . Ib i d . Ho w ev er, t h e n on m ov i n g p art y m ay n o tres tup o n th e m ere al l eg at i o ns o r d en i al s i n h i s p l ead i ng s b u ti n s t ead
m u sts etfo rt h s p eci fi c fact s s h o wi n g th atth ere i s a g en u i n e d i s p ut e fo r t ri al . Ru l e 1 2 1 (d ); s ee Su n d s tran dCo rp ., 9 8 T.C. at 5 2 0 . Fi n di n g n o m at eri al fact s t o b e i n d i s p u t e, we co n cl ud e t hatthi s cas e m ay b e ad ju d i cat eds u m

m ari l y . B. St an dardo f Rev i ew Wh ere t h e v al id i ty

o r am o u n t o f t h e t ax p ay er’ s u n d erl y i n g t ax l iab i l i ty i s p ro p erl y ati s s u e, we rev i ew th e IRS’ d et erm i n at i on d e n o v o. Go za v . Co m m i s s i on er, 1 1 4 T.C. 1 7 6 , 1 8 1 -1 8 2 (2 00 0 ). Where t h e t ax p ay er’ s u n d erl y i n g l i ab i l i t y i s
n o tb efo re u s , we rev i ew t h e IRS d et erm i n at i o n fo r ab u s e o f d i s cret i o n o n ly . Id
. at1 8 2
. Ab u s e o f d i s cret i o n ex i s t s wh en a d et erm i n at io n i s arb i trary , cap ri ci o u s , o r wi th o u ts o u n d b as i s i n facto r l aw. See M u rp h y v . Co m m i ss i o ner, 1 2 5 T.C. 3 0 1 , 3 2 0 (2 00 5 ), aff’ d, 4 6 9 F.3 d2 7 (1 s tCi r. 2 0 06 ). Pet i t i o ner d i dn o td i s p ut e, du ri n g th e h eari n g o r i n h i s p et i ti o n, the t ax l i ab i l i ty th ath e rep o rt ed fo r 2 01 3 . Rat h er, h e co n ten d s th atth e SO erred i n refu s i n g t o ap p ly , ag ai n s tth at2 0 13 l i ab i l i ty , a cred itb al an ce th ath e b el i ev es s h ou l d b e
av ai l ab l e i n o th er y ears . Th ere i s s o m e u n cert ai n ty i n o u r p reced en ts as t o wh et her- 8
-

[* 8 ] a d e n o v o o r an ab u s e-o f-d i s cret i o n s t an dardo f rev i ew ap pl i es i n a s i tu at i o n
s u ch as th i s . 3 As we ex p l ai n b el o w , we co n cl ud e t h atth e SO an s w ered co rrect l y th e cred i tcarry fo rwardqu es t io n th atp et i t i o n er rai s es . Becau s e we wo u lds u s t ai n h er res o l u t i o n o f thi s i s s u e u n der ei th er s t an d ardo f rev i ew, we n eedn o td eci d e wh i ch ap p l i es . See Di x o n v . Co m m i s s i o n er, 1 4 1 T.C. 1 7 3 , 1 8 4 & n .6 (2 0 1 3 ); Es t at e o f Ad el l v . Co m

m is s io n er, T.C. M em o . 2 0 1 4 -8 9 , 1 0 7 T.C.M
. (CCH) 1 4 6 3 , 1 4 6 6 ; Go l ub v . Co m

m is s i o n er, T.C. M em o . 2 0 1 3 -1 9 6 , 1 0 6 T.C.M . (CCH) 1 7 3 , 1 7 4 -1 7 5 . W i th reg ardt o m at t ers o th er t h an p et i t io n er’ s cl ai m o f o v erp aym en t cred i t s , we rev i ew t h e SO’ s act i o n fo r ab us e o f d i s cret i o n .

3 In Lan dry

v . Co m m i s si o n er, 1 1 6 T.C. 6 0 (2 0 0 1 ), we ap p l i eda d e n o v o s t an d ardo f rev i ew wh ere t h e t ax p ay er ch al l en gedth e IRS’ fai l ure t o ap p l y an o v erp aym en t cred i tfro m

an o th er y ear. W e co n cl u dedth atth i s was a ch al l en g e t o th e t ax p ay er’ s u n derl y i n g t ax l iab i l it y , i .e., “ th e am o u n t u np ai daft er ap p l i cat i o n o f cred i t s t o wh i ch * * * [th e t ax p ay er was ] en t i t l ed .” Id
. at6 2
. Onth e o th er h an d , we h av e ap p l i edab us e-o f-d i s cret i o n rev iew wh en co n s i d eri n g ch al l en g es t o th e IRS’ ap p l i cat i o n o f a t ax p aym en t . See M el as ky v . Co m m i s s i o n er, 1 51 T.C. 8 9 , 9 2 (2 0 1 8) (h o l d i n g th ata d i s p u te as t o wh et her a p aym en t was p ro p erl y cred i t edt o th e t ax p ay er’ s acco u n tfo r a p art i cu l ar y ear i s n o t a ch al l en g e t o h i s u n d erl y i n g l i ab i l i ty ), aff’ d , 8 0 3 F. Ap p’ x 7 32 (5 th Ci r. 2 02 0 ); Ori an v . Co m m i s s i o n er, T.C. M em o. 2 0 1 0 -2 3 4 , 1 0 0 T.C.M . (CCH) 3 56 , 3 59 ; Ko v acev i ch v . Co m m i s s i o n er, T.C. M em o . 2 00 9 -1 6 0 , 9 8 T.C.M . (CCH) 1 , 4 & n
. 1 0.- 9
-

[* 9 ] C. An al y s i s 1
. Ov erp aym en tCred i t s Ou r ju ri s d i ct i o n i n CDP cas es g en eral l y d oes n o tp erm i t u s t o co n si d er m at t ers reg ard i n g n o n d et erm i n at i on y ears , th ati s , t ax y ears th atare n o t th e s ub jecto f th e co l l ect i o n act i o n b efo re u s . Bu twe m ay co n si d er fact s an di s su es fro m o th er y ears t o th e ex t en tth ey

“ are rel ev an ti n ev al u at i n g a cl ai m th atan u np ai dt ax h as b een pai d.” Frei

je v . Co m m is s i o n er, 1 2 5 T.C. 1 4 , 2 7 (2 0 0 5 ). Anav ai l ab l e cred i t fro m an ot h er y ear i s a fact th atm ay affect th e t ax p ay er’ s co rrect l i ab i l i ty fo r t h e y ear b efo re t h e Co u rt . W eb er v . Co m m i ss i o n er, 1 3 8 T.C. 3 4 8 , 3 7 1 -3 7 2 (2 01 2 ). Bu t a cred i tm

u s tactu al ly

ex is ti n o rd er t o co n s t i tu te an “ av ai l ab l e cred i t
. ” A m ere cl ai m fo r a cred i t“ is n o tan ‘ av ai l ab l e cred i t ,’ ” an d s uch a cl ai m “ need n otb e res o l v edb efo re t h e IRS can p ro ceed wi th co l l ect i on o f t h e l i ab il i ty at i ss u e.” Id
. at3 7 2 ; s ee Del -Co W
. v . Co m m i s s i o n er, T.C. M em o . 2 0 1 5-1 4 2 , 1 1 0 T.C.M
. (CCH) 1 1 9 , 1 2 0 -1 2 1
. Atth e t im e o f p et it i o n er’ s h eari n g h i s acco u n t tran s cri p ts s h o wedth ath e h ad n o av ai l ab l e cred i tt o b e ap p l i edt o h is 2 0 1 3 t ax y ear. He s ub m i t tedn o ev i

d en ce o f an y

p aym en t s fo r 2 0 1 3 an do ffered o n l y v ag u e d i s p u t es wi th res p ectt o p ri o r y ears . Th e SO was n o treq u iredt o co n s id er t h e m eri t s o f t h o s e arg u m en t s .- 1 0 -

[* 1 0 ] See Preci s i on Pro s th et i c v . Co m m is s i o n er, T.C. M em o . 2 0 1 3-1 1 0 ; Ev eret t As s ocs ., In c. v . Co m

m i s s i o n er, T.C. M em o. 2 0 1 2 -1 4 3
. W e l i k ewi s e l ack juri s d i ct i o n t o co n si d er t h es e m at t ers . W e m ay co n s i d er

“ wh et h er a cred i tav ai l ab l e fro m an ot h er t ax y ear s h o u l db e ap p l i edt o th e t ax p ay er’ s l i ab i li ty

fo r t h e y ear b efo re t h e Co urt ” o n l y i f t h ato ther cred i t“ in d i s p u t ab l y
ex i s t s.” Del -Co W ., 1 1 0 T.C.M . (CCH) at 1 2 0
. Pet i t i o n er d o es n o t h av e a cred i t th at“ i n d is p u t ab l y

ex is t s,” an dwe are u n ab l e t o ad dres s h i s ch al l en g e t o t ax l i ab i l

i t ies fo r y ears n o tb efo re u s . See W eb er, 1 3 8 T.C. at3 6 6
. 2
. Oth er Is s ues In d eci d i ng wh et her t h e SO ab u s edh er d is cret i o n i n an y o th er res p ect , we
co n si d er wh eth er s h e: (1 ) p ro p erl y v eri fi ed th atth e requ i rem en t s o f an y ap p l i cab l e l aw o r adm i n i s trat i v e p ro cedure h adb een m et , (2 ) co n s id eredan y rel ev an t i s s u es p et i t i o n er rai s ed , an d (3 ) co n s i d ered“ wh et h er an y p ro p o s edco l l ect i o n act i o n b al

an ces th e n eedfo r t h e effi ci en tco l lect i o n o f t ax es wi th th e l eg i ti m at e co n cern o f

* * * [p et i t i o n er] th atan y co l l ect i o n act i o n b e n o m o re i n tru si ve t h an n eces s ary .” See s ec. 6 3 3 0 (c)(3 ). Ou r rev i ew o f t h e reco rdes t ab l i s hes th atth e SO p ro perl y d i s ch arg ed al l o f h er res p o ns i b i li t i es u n d er s ect io n 6 33 0 (c). Sh e v eri fi edth atp et i

t i on er’ s t ax l i ab i l i ty

fo r 2 0 13 h adb een p ro p erl y as s es sed , an ds h e co rrect l y d et erm i n ed th ath e h adn o “ av ai lab l e cred i t ” t o o ffs et ag ai ns tth atl i ab il i ty .- 1 1 -

[* 1 1 ] Sect io n 6 1 5 9 au th o ri zes th e Co m m i s si on er t o en t er i n t o an IA i f h e d et erm i n es th ati twi l l faci l i t at e fu l l o r p art i al co l l ect i o n o f a t ax p ay er’ s u np ai dl i ab i l i t y . See Th o m

p s o n v . Co m

m i s s i o n er, 1 4 0 T.C. 1 7 3 , 1 7 9 (2 01 3 ). Sub jectt o ex cep t i o n s
n o trel ev an t h ere, t h e d eci s i o n t o accep to r reject an IA l i es wi th i n th e Co m m i s s i on er’ s d i s cret io n. See Reb u ckv . Co m m i s s i on er, T.C. M em o . 2 01 6 -3 ; Ku ret s k i
v . Co m m i s s i o n er, T.C. M em o . 2 0 1 2 -2 6 2 , aff’ d , 7 5 5 F.3 d 9 2 9 (D.C. Ci r. 2 0 1 4 );
s ec. 3 0 1.6 1 5 9 -1 (a), (c)(1 )(i ), Pro ced . & Ad m i n . Reg s . As a ru l e, an SO m ay “ accep t , at a m i ni m

u m , a m on th l y p aym en tequ al t o t h e ex ces s o f a t ax p ay er’ s m o n t h

l y i n co m e o v er t h e t ax p ay er’ s al l o wab l e ex p en s es . ” Bo u l ware v . Co m m i s s i o n er, T.C. M em o . 2 01 4 -8 0 , 1 0 7 T.C.M (CCH) 1 4 1 9 , 1 4 26 , aff’ d , 8 1 6 F.3 d1 3 3 (D.C. Ci r. 2 0 16 ); s ee Bero v . Co m m i s s i o n er, T.C. M em o . 2 0 1 7-2 3 5 ; Fri ed m an v . Co m m i s s i o n er, T.C. M em o . 2 0 1 3 -4 4 . W e wi l l n o ts ubs t i tu te o u r ju d gm en tfo r t h e SO’ s , recal cu l at e t h e t ax p ay er’ s ab i l i ty t o p ay , o r i nd ep en d en t l y d et erm i n e wh at
wo u l db e an accep t ab l e o ffer. See Th o m p s o n , 1 4 0 T.C. at1 7 9 ; Li p s o n v . Co m m i s s i o n er, T.C. M em o . 2 0 1 2 -2 5 2
. AnSO d o es n o t ab u s e h er d i scret i o n b y ad h eri n g t o p ro v is i on s o f t h e In t ern al Rev en u e M an ual (IRM ) g o v ern i n g accep t an ce o f co l l ect i o n al t ern at i v es . See Ven ezi an o v . Co m

m i s s i on er, T.C. M em o . 2 0 1 1-1 6 0 , 1 02 T.C.M . (CCH) 2 2 , 2 4 ; Et k i n v . Co m

m i s s i o n er, T.C. M em o . 2 0 0 5 -2 4 5 , 9 0 T.C.M . (CCH) 4 1 7, 4 2 1 ;- 1 2 -

[* 1 2 ] Sch u l m an v . Co m

m i s s i o n er, T.C. M em o . 2 0 02 -1 2 9 , 8 3 T.C.M . (CCH) 1 7 3 8 , 1 7 4 2 & n .6 . W e fi n d t h atth e SO p ro perl y ad h eredt o rel ev an t IRM p ro v i s i o n s i n d et erm i n i n g p et i t i o n er’ s m o n th l y i n co m e an dex p en s es . As a g en eral ru l e, “ al l h o u s eh o l di n co m e * * * wi l l b e u s edt o d et erm i n e t h e t ax p ay er’ s ab i l i ty

t o p ay .” IRM p t . 5 .1 5 .1 .1 2(1 ) (Au g . 2 9 , 2 01 8 ). In co m e i s i n cl u d i b l e i n d et erm i n i n g ab i l i ty t o p ay ev en i f i ti s n o t s ubjectt o i n co m e t ax . See i d . p t . 5 .1 5 .1 .1 2 (2 ) (s t at i n g th ath o u s eh ol di n co m e i ncl u d es am o un t s recei v edfro m p en si o n s, So ci al Secu ri ty , an d p ro fi ts h ari n g p lan s ); s ee Li g m anv . Co m m i s s i o n er, T.C. M em o . 2 01 5 -7 9 , 1 0 9 T.C.M . (CCH) 1 40 5 , 1 4 0 7 (ru l i n g thatb en efi ts n o t l i st edi n th e IRM were i n cl u d i b l e fo r p u rp o ses o f d et erm i n in g el i g i b i l i ty ). Th e SO d i dn o t ab u s e h er d i s cret i o n b y i n cl u d i n g p et i t i o ner’ s VA b en efi ts i n h i s m o n th l y i n co m e. See M at th ews v . Co m m i s s i o n er, T.C. M em o . 2 0 1 5-2 2 5 , 1 1 0 T.C.M
. (CCH) 4 8 3 , 4 8 8 (ru l i n g th at anSO d i d n o t ab u s e h er d i s cret i o n b y i n cl u d i n g VA b en efi t s wh en cal cu l at in g ab i l i ty t o p ay ). Th e SO p ro p erl y d i s al l o w edp et i t i o n er’ s cl ai m edex p en s es fo r l i fe i n s u ran ce, s ee IRM p t . 5 .1 5 .1 .2 6 (Oct . 2 , 2 0 12 ), an ds h e al l o wed al l o ther ex p en s es fo r wh i ch h e s up p l i edv eri fi cat io n . Fi n d i n g n o ab u s e o f d i s cret i o n i n th i s o r an y o th er res pect , we wi l l g ran t
s u m m ary ju d g m en tfo r res p o n d en tan d s u s tai n th e p ro p o s ed co l l ect i on act i o n . In
res p o n d in g t o th e m o t i o n fo r s u m m ary ju d g m en tp et i t i o n er s t at edth ath i s i n co m e- 1 3 -

[* 1 3 ] h as ch an g edb ecau se h e recen t l y ret i redfro m

h i s p art -t i m e jo b . If p et i t i o n er’ s fi n an ci al ci rcu m s t an ces h av e ch an g eds i n ce t h e CDP h eari ng , h e i s free t o s ub m i tt o th e IRS at an y t i m e, fo r i t s co n si derat io n an dp o s s i b l e accep t an ce,
a co l l ect io n al t ern at i v e i n th e fo rm o f an OIC o r an IA, s up p ort edb y up d at ed fi nan ci al i n fo rm at i on . To i m p lem en tth e fo reg o i n g , Anap p ro p ri at e o rd er an dd eci s i o n wi l l b e en t eredfo r res p on d en t
.