Joseph G. Dostal - Page 16

                                       - 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, 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  Next

Last modified: May 25, 2011