Edward H. and Anne G. Harrell - Page 22

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          other Courts of Appeals had held that the lookback period is not            
          automatically tolled by a prior bankruptcy proceeding but that              
          equitable considerations could permit tolling on a case-by-case             
          basis.  Id.                                                                 
               We believe that at the time petitioners rejected AO Martin’s           
          suggested installment agreement, and at the time the Notice of              
          Determination was issued, there was sufficient reason to raise a            
          doubt as to petitioners’ tax liabilities for 1991, 1992, and                
          1993, so as to justify petitioners’ rejection of an installment             
          agreement based in part upon a concession of the 1991-93                    
               The Supreme Court granted certiorari in Young v. United                
          States, 533 U.S. 976 (2001), on September 25, 2001, which                   
          predated by more than 3 months respondent’s Notice of                       
          Determination.  If AO Martin’s research had revealed the grant of           
          certiorari, prudence might have prompted postponing further                 
          action pending the likelihood that the Supreme Court would                  
          eventually resolve the equitable tolling issue, and lay to rest             
          the “doubt as to liability” question for purposes of petitioners’           
          Offer in Compromise.  Since the Supreme Court resolved the                  
          tolling issue only after the above-described crucial events had             
          transpired, we believe that petitioners are entitled to                     
          reconsider their rejection of the proposed installment agreement,           
          and if they desire to do so, offer a collection alternative.                

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