- 10 - C. Effect of the Noninclusion of Petitioners’ 1992 Taxes in the Installment Agreement The parties agree that respondent’s established policy is to include all balance due accounts in an installment agreement. Contrary to petitioners’ assertion, however, it does not follow that noninclusion of a balance due for a particular year thereby eliminates it. We have concluded that the noninclusion of the 1992 balance due was most likely a mistake. Respondent’s transcripts of petitioners’ accounts, which are in evidence and which petitioners do not directly challenge, show that at all relevant times (including now) petitioners have had an outstanding unpaid balance for their 1992 tax year. We are unconvinced that the appropriate remedy for respondent’s ostensible mistake is to grant petitioners a windfall of a portion of their otherwise undisputed 1992 tax liability. In this regard, we note that respondent is not authorized to compromise a liability except as provided in section 7122 regarding offers in compromise. See Harbaugh v. Commissioner, T.C. Memo. 2003-316 (“It is well settled that section 7122 and the regulations thereunder provide the exclusive method of effectuating a valid compromise of assessed tax liabilities.”). Unlike an offer in compromise, an installment agreement necessitates full payment of the tax liability involved without compromise. See sec. 301.6159-1, Proced. & Admin. Regs. (providing that an installment agreement “allows the taxpayer toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
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