Robert A. and Nanci M. Spurgin - Page 8




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          after petitioners’ 1993 liability was fully satisfied.  See infra           
          “E”.                                                                        
               At this time we are closing your case out of the                       
               Problems Resolution Program and apologize for any                      
               inconvenience we may have caused you.                                  
               Petitioners’ 1993 account remained in uncollectible status             
          until July 11, 1997.                                                        
          D.  Petitioners’ Efforts To Compromise Their 1993 Tax Liability             
               By virtue of section 7122(a), the Commissioner is authorized           
          to compromise a taxpayer’s tax liability.  Pursuant to that                 
          authority, the Commissioner has published directives regarding              
          offers in compromise.5  See Internal Revenue Manual (IRM), sec.             
          57(10)0 (Feb. 26, 1992) et seq.  Form 656, Offer in Compromise,             
          is the form that respondent has designed for use by a taxpayer              
          who wishes to submit an offer in compromise.                                
               When an offer in compromise is received from a taxpayer, a             
          determination is made by an offer technician whether the offer is           
          “processable”.  IRM, sec. 57(10)9.1(1) (Feb. 26, 1992).  An offer           
          that is processable is assigned to a collection officer,                    
          typically a revenue officer, for investigation and evaluation.              
          An offer that is “unprocessable” is returned to the taxpayer.               


               5  We note that the enactment of sec. 7122(c), relating to             
          the evaluation of offers in compromise, because it applies to               
          offers in compromise submitted after July 22, 1998, does not                
          apply in this case.  The same is true of the temporary                      
          regulations published thereunder, which are applicable to offers            
          in compromise submitted on or after July 21, 1999, through July             
          19, 2002.  See sec. 301.7122-1T(j), Temporary Proced. & Admin.              
          Regs., 64 Fed. Reg. 39027 (July 21, 1999).                                  





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