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circumstances were present “such that collection of the full
liability will be detrimental to voluntary compliance”, and there
was no evidence that a compromise would encourage future
compliance and promote effective tax administration.
4. Petitioner declined to consider an installment
agreement.
5. The notice of Federal tax lien filing balanced the need
for efficient collection of taxes with the legitimate concern of
the taxpayer that the collection action be no more intrusive than
necessary.
On October 30, 2002, petitioner filed a timely petition
contesting respondent’s determination. Petitioner alleged that
“the Internal Revenue Service abused its discretion in making the
findings and conclusions it did and abused its discretion in
rejecting petitioner’s offer in compromise.”
OPINION
All property and rights to property of a taxpayer become
subject to a lien in favor of the United States on the date a tax
liability is assessed against the taxpayer if the taxpayer fails
to meet the Commissioner’s demand for payment of the tax
liability. Secs. 6321 and 6322. Until a notice of Federal tax
lien is filed, a lien is without validity and priority against
certain persons such as judgment lien creditors of the taxpayer.
Sec. 6323(a). After the Secretary files the notice of Federal
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Last modified: May 25, 2011