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below, we will grant respondent’s motion to dismiss for failure
to state a claim upon which relief can be granted.1
Background
In early 1996, petitioners entered into an offer in
compromise respecting their tax liability for the taxable year
1991. Respondent accepted the offer in compromise, and
petitioners made full payment in satisfaction of the agreement.
See sec. 7122.
Contrary to the terms of the offer in compromise, respondent
sent a notice of intent to levy to petitioners in 1997 demanding
payment of approximately $11,000 in tax liability for the 1991
taxable year. After respondent refused petitioners’ initial
requests to withdraw the notice of intent to levy, petitioners
retained counsel to assist them.
Petitioners’ counsel persuaded respondent to withdraw the
notice of intent to levy. Shortly thereafter, petitioners’
counsel filed a claim with respondent requesting an award of
administrative costs; i.e., legal fees that petitioners incurred
in challenging the notice of intent to levy. Although an Appeals
officer initially indicated that he would recommend that
petitioners be awarded $3,471, the claim for administrative costs
1 Unless otherwise indicated, section references are to
sections of the Internal Revenue Code.
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