-5-
believed they could obtain a “better deal” in Tax Court
and wanted to leave it up to them for a final
determination. You have not shown you are entitled to
any reduction on your tax liabilities via the Offer in
Compromise.
Petitioners do not dispute that their net equity in
available assets exceeded the amount offered in compromise, and
in fact exceeded the total tax liability in issue.
Discussion
Section 6320 provides that a taxpayer shall be notified in
writing by the Secretary of the filing of a Federal tax lien and
provided with an opportunity for an administrative hearing. Sec.
6320(b). A hearing under section 6320 is conducted in accordance
with the procedural requirements set forth in section 6330. Sec.
6320(c). At the administrative hearing, a taxpayer is entitled
to raise any relevant issue relating to the unpaid tax, including
collection alternatives such as an offer in compromise or an
installment agreement.3 Sec. 6330(b) and (c)(2); sec. 301.6320-
1(e)(1), Proced. & Admin. Regs.
This Court has jurisdiction under section 6330 to review the
Commissioner’s administrative determinations. Sec. 6330(d).
Where, as here, the validity of the underlying tax liability is
not at issue, we review the determination for abuse of
discretion. Sego v. Commissioner, 114 T.C. 604, 610 (2000); Goza
3 Sec. 7122(d)(2) allows a taxpayer to appeal any rejection
of an offer or agreement to the IRS Office of Appeals.
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Last modified: May 25, 2011