- 16 -
administered in a fair and equitable manner. Sec. 301.7122-
1(b)(3)(ii), Proced. & Admin. Regs.
Where, because the reasonable collection potential of the
case exceeds the taxpayer’s liability, doubt as to collectibility
is not a ground for compromise, the Secretary may enter into a
compromise on the ground of effective tax administration. Sec.
301.7122-1(b)(3), Proced. & Admin. Regs. Before the Secretary
will enter into a compromise on the ground of effective tax
administration, the taxpayer must show, among other things, that
collection in full would cause him economic hardship or, if he
cannot, that compelling public policy or equity considerations
justify such compromise. Id.
IV. The Parties’ Arguments
In support of his assignment of error, petitioner avers that
(1) acceptance of an offer in compromise was in the best
interests of respondent and petitioner, and (2) Ms. Boudreau
improperly and prematurely concluded the section 6330 hearing.
With respect to the averments, petitioner asks us to consider not
only the administrative record of the hearing, which consists of
documents stipulated by the parties (the hearing record), but
also petitioner’s and Ms. Boudreau’s trial testimony.
Respondent answers that Ms. Boudreau did not abuse her
discretion in rejecting the offer in compromise and determining
that respondent may proceed to collect the unpaid tax by levy,
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011