- 17 -
tax debt approximated $13,000. The evidence fails to establish
that collection against less than one-thirteenth of the asset’s
value would leave petitioner unable to meet basic living costs in
the immediately foreseeable future. Needs over the longer term
would be no more than rampant speculation. Hence, the totality
of the financial information in the record does not show that
respondent committed an abuse of discretion in concluding that
the disputed lien would not create economic hardship.
In addition, while the regulations also provide that
collection that will prove detrimental to voluntary compliance
may be inappropriate regardless of financial circumstances,
petitioner’s overall compliance history does not weigh in favor
of compromise. Petitioner repeatedly failed to file timely
Federal tax returns and to pay taxes due. She annually omitted
from her returns significant rental income from the Cape Cod
residence prior to its sale. The record also suggests that
petitioner defaulted on an earlier installment agreement.
Against this background and in the absence of other unique or
compelling circumstances alleged by petitioner, considerations of
policy or fairness do not require that petitioner be relieved of
her tax liabilities.
To summarize, the evidence before us does not indicate that
in rejecting petitioner’s offer in compromise, respondent acted
arbitrarily, capriciously, or without sound basis in fact or law.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011