- 8 - When the first and second calls were made, a liability could be compromised only if there was doubt as to liability or doubt as to collectibility.6 Sec. 301.7122-1(a), Proced. & Admin. Regs. Petitioners’ liability was not in doubt at the time of the “agreement” because petitioners had filed the tax returns calculating the taxes due and were not contesting the accuracy of the returns. Petitioners have not established that they delivered any financial statements or other evidence of their financial situation to the IRS at the time of the first call indicating doubt as to collectibility. Thus, the evidence does not demonstrate that a valid basis existed for compromising petitioners’ tax liabilities. The regulations also required offers in compromise to be submitted on “forms prescribed by the Internal Revenue Service”. Sec. 301.7122-1(d)(1), Proced. & Admin. Regs. An offer is accepted “only when the proponent thereof is so notified in writing.” Sec. 301.7122-1(d)(3), Proced. & Admin. Regs.; see also Ringgold v. Commissioner, supra. Petitioners did not submit a written offer in compromise to the IRS. They also do not claim to have received a written acceptance of the purported agreement from the IRS. Without satisfaction of these procedural elements, we cannot find that a valid compromise was made. 6 In response to the enactment in 1998 of sec. 7122(c), the regulations were changed to add a third basis for compromise.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011