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that collection of the full liability will be
detrimental to voluntary compliance by taxpayers; and
(iii) Compromise of the liability will not
undermine compliance by taxpayers with the tax laws.
(iv) Special rules for evaluating offers to
promote effective tax administration.--(A) The
determination to accept or reject an offer to
compromise made on the ground that acceptance would
promote effective tax administration within the meaning
of this section will be based upon consideration of all
the facts and circumstances, including the taxpayer’s
record of overall compliance with the tax laws.
(B) Factors supporting (but not conclusive of) a
determination of economic hardship under paragraph
(b)(4)(i) include--
(1) Taxpayer is incapable of earning a living
because of a long term illness, medical condition, or
disability and it is reasonably foreseeable that
taxpayer’s financial resources will be exhausted
providing for care and support during the course of the
condition;
(2) Although taxpayer has certain assets,
liquidation of those assets to pay outstanding tax
liabilities would render the taxpayer unable to meet
basic living expenses; and
(3) Although taxpayer has certain assets, the
taxpayer is unable to borrow against the equity in
those assets and disposition by seizure or sale of the
assets would have sufficient adverse consequences such
that enforced collection is unlikely.
(C) Factors supporting (but not conclusive of) a
determination that compromise would not undermine
compliance by taxpayers with the tax laws include--
(1) Taxpayer does not have a history of
noncompliance with the filing and payment requirements
of the Internal Revenue Code;
(2) Taxpayer has not taken deliberate actions to
avoid the payment of taxes; and
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Last modified: May 25, 2011