- 3 -
On March 26, 2002, petitioners’ counsel, acting under a
power of attorney from petitioners, submitted on behalf of
petitioners a Form 12153, Request for a Collection Due Process
Hearing, requesting a hearing under section 6320 with
respondent's Appeals Office. Also submitted with the Form 12153
was a Form 656, Offer in Compromise, setting forth petitioners’
offer to pay $100 to settle their 1995, 1996, and 1997 tax
liabilities. Petitioners’ offer in compromise was based on
“effective tax administration” (ETA).
A section 6320 hearing was held on August 14, 2002. On
October 3, 2002, respondent's Appeals officer issued the notice
of determination rejecting petitioners’ offer in compromise and
sustaining the Federal tax lien, but recommending that
petitioners' accounts be suspended as "temporarily not
collectible". The Appeals officer based his determination to
sustain the lien on the value of certain assets owned by
petitioners, which include a house, two vehicles, and personal
effects. The Appeals officer measured the quick sale value of
petitioners’ assets, less encumbrances against them, and found
that the net amount of petitioners’ equity in the assets greatly
exceeded petitioners’ tax liabilities for the years 1995-97. For
example, one of petitioners’ automobiles alone had a quick sale
value in excess of the tax liabilities. However, the Appeals
officer then noted that petitioners faced various hardships that
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011