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position with respect to any relevant issues, including those
items enumerated in section 6330(c)(2)(A); i.e., spousal
defenses, challenges to the appropriateness of the collection
action, and offers of collection alternatives.
Here, petitioner apparently expressed interest in an offer
in compromise. Section 7122(a), as pertinent here, authorizes
the Secretary to compromise any civil case arising under the
internal revenue laws. Regulations promulgated under section
7122 set forth three grounds for compromise of a liability: (1)
Doubt as to liability, (2) doubt as to collectibility, or (3)
promotion of effective tax administration. Sec. 301.7122-1(b),
Proced. & Admin. Regs.4 With respect to the third listed ground,
a compromise may be entered to promote effective tax
administration where: (1)(a) Collection of the full liability
would cause economic hardship; or (b) exceptional circumstances
exist such that collection of the full liability would undermine
4 Sec. 301.7122-1, Proced. & Admin. Regs., contains an
effective date provision stating that the section applies to
offers in compromise pending on or submitted on or after July 18,
2002. Sec. 301.7122-1(k), Proced. & Admin. Regs. Previous
temporary regulations by their terms apply to offers in
compromise submitted on or after July 21, 1999, through July 19,
2002. Sec. 301.7122-1T(j), Temporary Proced. & Admin. Regs., 64
Fed. Reg. 39027 (July 21, 1999). Because the final and temporary
regulations do not differ materially in substance in any way
relevant here, and for purposes of simplicity and convenience,
the final regulations will be cited. We further note that
temporary regulations are entitled to the same weight and binding
effect as final regulations. Peterson Marital Trust v.
Commissioner, 102 T.C. 790, 797 (1994), affd. 78 F.3d 795 (2d
Cir. 1996).
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