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enter into installment agreements to pay specific tax periods in
full and to have other tax periods designated as CNC.
2 Administration, Internal Revenue Manual (CCH), sec. 5.14.2.2,
at 17,529 (effective Mar. 30, 2002). Respondent’s new policy,
however, still requires that taxpayers borrow upon or liquidate
current assets. 2 Administration, Internal Revenue Manual (CCH),
sec. 5.14.2.2(1), at 17,529 (effective Mar. 30, 2002). At trial,
petitioners’ counsel argued that this case was not about abuse of
discretion by an individual settlement officer, but rather about
an “institutional abuse of discretion” in the application of the
policy that respondent used when considering petitioners’
proposed installment agreement. Petitioners claim respondent
should have treated the cumulative liability as consisting of
separate liabilities for each year and should have classified
some years as CNC while allowing petitioners an installment
agreement for the liabilities for other years.
The settlement officer properly applied the policies
applicable when considering petitioners’ request for an
installment agreement, and we find no abuse of discretion in his
action. Further, particularly in light of the unresolved
question relating to ownership of the real estate, petitioners
have failed to establish that they would qualify for treatment
under respondent’s new policy. We find no abuse of discretion in
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