Scott Roman - Page 10

                                       - 10 -                                         
               a de novo basis.  However, where the validity of the                   
               underlying tax liability is not properly at issue, the                 
               Court will review the Commissioner’s administrative                    
               determination for abuse of discretion. [Sego v.                        
               Commissioner, 114 T.C. 604, 610 (2000).]                               
               C.  Offers in Compromise                                               
               Section 7122(a), as pertinent here, authorizes the Secretary           
          of the Treasury 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.3  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            

               3 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, we need not resolve which section would apply in             
          petitioner’s circumstances.  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).  For                
          simplicity and convenience, citations will be to the final                  

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011