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month for 18 months, with the remaining amount of their income
tax liability to be paid at the end of the 18-month period. At
the time that petitioners proposed this installment agreement to
Riley, Riley had determined that the total amount of their unpaid
tax liabilities was $645,537. This figure included the reported
but unpaid income tax liability on petitioners’ joint Federal
income tax return for 1999 and trust fund penalties that had been
imposed against each of them for 1991. Based upon the financial
information petitioners submitted to Riley, she determined that
petitioners had the ability to pay the total amount of their
unpaid tax liabilities sooner than the amount of time requested
in the proposed installment agreement. Accordingly, Riley
rejected petitioners’ proposed installment agreement.
On September 19, 2001, petitioners also submitted a
Form 9423, Collection Appeal Request, in which they requested
that respondent not file a Federal tax lien. Petitioners
provided, in pertinent part, the following explanation for their
request:
Taxpayer is working to sell the assets reported on
Forms 433-A and 433-B * * *. Taxpayer believes that a
substantial portion of such assets can be sold by
December 31, 2001 and that all can be disposed of
within the next twelve months. These sales would
provide funds to satisfy the tax liability in question.
Filing a tax lien would materially reduce the market
value of the assets to be sold and cause the banks to
call loans on which most of these assets are pledged.
That would put the taxpayer out of business with no
resources to pay the tax liability.
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