Mark Fowler and Joylyn Souter-Fowler - Page 14

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          administrative procedure was met in this case.  However, it is              
          questionable as to whether the proposed collection action                   
          balanced the need for efficient collection of taxes with the                
          concern of petitioners that any collection action be no more                
          intrusive than necessary.                                                   
               Payment plans are one possible option for an offer in                  
          compromise.  According to the instructions that accompany the               
          Form 656, there are three possible payment plans under the short-           
          term deferred payment offer.  One plan requires full payment of             
          the realizable value of assets within 90 days from the date the             
          Internal Revenue Service accepts the offer, and payment, within 2           
          years of acceptance of the amount that they could collect over 60           
          months.  A second plan permits a cash payment for a portion of              
          the realizable value of petitioners’ assets within 90 days of the           
          offer being accepted, and the balance of the realizable value               
          plus the remainder of the amount that could have been collected             
          over 60 months within 2 years.  The third plan permits monthly              
          payments of the entire offer amount over a period not to exceed 2           
          years from the date of acceptance by the Internal Revenue                   
          Service.  Petitioners offered $100 per month for 2 years or 24              
          months, which equals the $2,400-compromise amount.5                         

               5 Although not relevant to the facts of this case, there is            
          also a deferred payment offer that provides for a plan similar to           
          the short-term deferred plan (the third plan described above).              
          The deferred payment plan allows the entire offer amount to be              

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Last modified: May 25, 2011