- 16 -
Regs.; or (2) exceptional circumstances exist such that
collection of the full liability would be detrimental to
voluntary compliance by taxpayers; and (3) compromise of
the liability will not undermine compliance by taxpayers
with tax laws. Sec. 301.7122-1(b)(3), Proced. & Admin.
Regs.; see 2 Administration, Internal Revenue Service
(CCH), section 5.8.11.2, at 16,385-3 (taxpayer’s liability
may be eligible for compromise to promote effective tax
administration if the taxpayer is not eligible for
compromise based on doubt as to liability or doubt as to
collectibility, and taxpayer has exceptional circumstances
to merit the offer). Under section 301.6343-1(b)(4)(i),
Proced. & Admin. Regs., a levy creates economic hardship
“if satisfaction of the levy in whole or in part will cause
an individual taxpayer to be unable to pay his or her
reasonable basic living expenses.”
Petitioner contends for three reasons that respondent
abused his discretion by refusing to accept petitioner’s
offer-in-compromise. First, petitioner contends that the
Appeals officer “was without basis in determining that
Mr. Dostal was in substantial non-compliance.” As we
understand petitioner’s brief, he complains that the
Appeals officer “declined to consider” his offer-in-
compromise because of petitioner’s “noncompliance with
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011