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a. request full or partial payment * * * .
* * * * * * *
c. installment agreements will be
recommended for rejection if there is
sufficient equity or cash available to:
• fully pay the taxes, and full payment is not
received by a set date. [2 Administration,
Internal Revenue Manual, sec. 5.14.1.4(6),
at 17,508.]
Subsequent to the administrative hearing, petitioners made a
$100,000 payment to respondent and listed more properties for
sale with a real estate broker. Petitioners contend that these
factors demonstrate their willingness to pay the tax liability
and respondent’s rejection of the installment agreement was an
abuse of discretion.
Discussion
I. Standard of Review
Because the underlying tax liability is not in dispute, we
review the Appeals officer’s actions under an abuse of discretion
standard. Goza v. Commissioner, 114 T.C. 176, 181-182 (2000).
Under the abuse of discretion standard, a determination will be
affirmed unless the respondent took action that was arbitrary or
capricious, lacks sound basis in law, or is not justifiable in
light of the facts and circumstances. Mailman v. Commissioner,
91 T.C. 1079, 1084 (1988).
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Last modified: May 25, 2011