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proposed levy. Sec. 6330(c)(2). Such issues include any
appropriate spousal defense, challenges to the appropriateness of
collection, and offers of collection alternatives such as an
installment agreement or an offer-in-compromise. Sec.
6330(c)(2)(A). After the hearing, a determination is made that
addresses those issues raised by the taxpayer, verifies that all
requirements of applicable law and administrative procedures have
been met, and balances the need for the efficient collection of
taxes with the legitimate concern of the person that any
collection action be no more intrusive than necessary. Sec.
6330(c)(3)(C).
The sole issue raised by petitioners both at the hearing and
at trial is respondent’s consideration of their OIC. We must
decide, therefore, whether the Settlement officer’s rejection of
petitioner’s OIC was proper.
A. Standard of review
Because the validity of petitioners’ underlying tax
liabilities is not in issue, we review the administrative
determination for abuse of discretion. See Sego v. Commissioner,
114 T.C. 604, 610 (2000); Goza v. Commissioner, 114 T.C. 176,
181-183 (2000). In doing so, we do not conduct an independent
review of what would be an acceptable offer in compromise.
Rather, we review only whether the Settlement officer's refusal
to accept petitioners’ OIC was arbitrary, capricious, or without
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Last modified: May 25, 2011