Allowable living expenses for CDP standards (RCP, CNC, OIC, IA, PPIA) are local. Like politics. And since this is a nonpolitical blog, we’ll stick to the allowable expenses for the locality wherein the taxpayer resides.

Robert J. Norberg and Debra L. Norberg, T. C. Memo. 2022-30, filed 4/5/22, say their circumstances leave them worse off than locally allowable, but have no evidence in support thereof.

Judge Albert G (“Scholar Al”) Lauber won’t disturb Appeals’ NOD.

“We find no abuse of discretion. Although petitioners allege that their cost of living exceeds their income, this allegation appears based on the expenses reported on their Form 433–A, without reference to prevailing local standards. SO2 was authorized to rely on those standards in assessing their ability to pay, and it was their burden to justify a departure from the local standards. See Friedman, 105 T.C.M. (CCH) at 1290. Petitioners have not attempted to meet that burden.” T. C. Memo. 2022-30, at p. 6. Note, SO2 is Settlement Officer 2, the one who rescued the Norbergs’ file from the COVID-locked-down IRS office.

Of course, the Norbergs can always try again for an IA, a PPIA, or an OIC; just bring the substantiation along.