George Ira Nicol - Page 10

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          Commissioner, T.C. Memo. 2004-7; see also, e.g., Crisan v.                  
          Commissioner, T.C. Memo. 2003-318; Willis v. Commissioner, T.C.             
          Memo. 2003-302; O'Brien v. Commissioner, T.C. Memo. 2003-290;               
          Schulman v. Commissioner, T.C. Memo. 2002-129.                              
               a.  Offer in Compromise                                                
               Section 7122(a) authorizes the Commissioner to compromise a            
          taxpayer's outstanding liabilities.  The regulations and                    
          procedures under section 7122 provide the exclusive method of               
          effectuating a nonjudicial compromise.3  Laurins v. Commissioner,           
          889 F.2d 910, 912 (9th Cir. 1989), affg. Norman v. Commissioner,            
          T.C. Memo. 1987-265; Shumaker v. Commissioner, 648 F.2d 1198,               
          1199-1200 (9th Cir. 1981) (citing Botany Worsted Mills v. United            
          States, 278 U.S. 282, 288-289 (1929)), affg. in part, revg. and             
          remanding in part per curiam on other grounds T.C. Memo. 1979-71.           



               3Sec. 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, the Court need not resolve which section would               
          apply in petitioner's circumstances.  The Court further notes               
          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).  For simplicity and convenience, citations are to the           
          final regulations.                                                          






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