Edward F. Murphy - Page 8

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          collection alternative had been proposed and she had decided that           
          respondent’s proposed collection action should stand.                       
               On May 14, 2003, Ms. Boudreau submitted an IRS Form 5402-c,            
          Appeals Transmittal and Case Memo, to her supervisor recommending           
          that the proposed collection action stand.  In an attachment to             
          the Form 5402-c (the attachment), Ms. Boudreau states that she              
          has verified that all legal and administrative requirements that            
          needed to be satisfied with respect to collection by levy had               
          been satisfied.  She describes petitioner’s offer to compromise             
          the 1992-2001 liability (“approximately $260,000”) for $10,000.             
          She states that the offer was submitted on the alternative                  
          grounds of effective tax administration and doubt as to                     
          collectibility.  She concludes that, because she is prohibited              
          from accepting an offer in compromise based on effective tax                
          administration unless the Commissioner could collect the                    
          outstanding liability in full, and petitioner has insufficient              
          resources from which the Commissioner could collect the 1992-2001           
          liability in full, effective tax administration is unavailable as           
          a ground for an offer in compromise.  She concludes that,                   
          although petitioner cannot pay the entire 1992-2001 liability and           
          may qualify for an offer in compromise based on doubt as to                 
          collectibility:  “[H]e can pay considerably more than the $10,000           
          being offered.”                                                             







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