Charles R. Godwin et al. - Page 27

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          Instead petitioners attempted to settle their entire liability              
          for $100,000 without providing any facts to support their claimed           
          inability to pay the full tax liability, without any factual                
          assertions or legal argument that they were not liable for the              
          full tax liability, and without any legal basis for respondent’s            
          acceptance of such an offer.  A decision by respondent’s agents             
          not to process petitioners’ offer in compromise would have been a           
          reasonable exercise of respondent’s discretion.                             
               In the absence of a justiciable claim for relief in the                
          petitions for review of respondent’s proposed collection action,            
          we grant respondent’s motion to strike portions of petitioners’             
          reply brief on the issue of abuse of discretion.                            
          Issue 2.  Abatement of Interest                                             
                                  FINDINGS OF FACT                                    
               In the section 6330 cases, respondent assessed interest of             
          $21,984.63 accrued on the tax liability reported on petitioners’            
          1997 return.  In the Linda Godwin notice, respondent stated that            
          abatement of interest is not granted.  The amount of interest is            
          not contested.                                                              
               Petitioners argue that interest on late-paid tax reported on           
          their 1997 return should be abated because they resided in a                
          Presidentially declared disaster area in 1997 and 1998.                     

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