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petitioners’ tax liability, including all penalties and interest,
or to make an offer of a collection alternative as provided in
section 6330(c)(2)(A)(iii). Petitioners will not be permitted to
further challenge AO Martin’s status as an impartial officer, as
defined in section 6330(b)(3), or otherwise, or to raise any new
or additional issues.
Our reasons for remanding this case to the Commissioner are
as follows:
As previously described, petitioner Edward H. Harrell filed
for chapter 11 bankruptcy on October 24, 1995, and petitioner
Anne G. Harrell similarly filed on December 18, 1996. Their
cases were consolidated on February 27, 1997, and dismissed on
June 30, 1997. On the same day as the dismissal of their chapter
11 case, petitioners filed a petition for chapter 7 bankruptcy
relief.
Petitioners based their Offer in Compromise for their 1991,
1992, and 1993 tax years on “doubt as to liability”, taking the
position that their liability for these years was discharged
under chapter 7 of the Bankruptcy Code. They theorized that the
returns for those years were filed outside the 3-year lookback
period contained in the Bankruptcy Code. See 11 U.S.C. sec.
507(a)(8)(A)(i) (2000).
AO Martin, based on her review of the facts and applicable
law, including case law, concluded that there was equitable
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