- 33 -
inability to pay in full agrees with the information petitioner
provided her, and we see no error in that conclusion or in her
decision, based on that conclusion, to reject effective tax
administration as a ground for compromising the 1992-2001
liability. Section 301.7122-1(b)(3)(ii), Proced. & Admin. Regs.,
makes the ability to make full payment a precondition to any
offer in compromise based on effective tax administration.10
Nor do we see any error in Ms. Boudreau’s decision to reject
petitioner’s offer of $10,000 in settlement of the 1992-2001
liability of $275,777 on the ground of doubt as to
collectibility. She reviewed the information submitted by
petitioner during the hearing. She found that petitioner was
operating a business and earning more than $30,000 a year.
Combined with his monthly pension income, and after subtracting
10 In his reply brief, petitioner, for the first time,
raises a challenge to sec. 301.7122-1, Proced. & Admin. Regs., in
so far as it sets forth the requirements that a taxpayer must
meet to qualify for a compromise on the basis of effective tax
administration. Petitioner bases his challenge on changes made
to sec. 7122 by the Internal Revenue Service Restructuring and
Reform Act of 1998, Pub. L. 105-206, sec. 3462(a) and (c)(1), 112
Stat. 764, 766. See H. Rept. 105-599, at 287-289 (1998), 1998-3
C.B. 747, 1041-1043 (addressing effective tax administration).
That argument is raised too late for consideration. See Rule
334(b)(4); Aero Rental v. Commissioner, 64 T.C. 331, 338 (1975);
Kelly v. Commissioner, T.C. Memo. 1996-529. Petitioner does not
lose much by our so ruling, since, as described supra sec. III.
of this report, the same factors are taken into account in
considering offers in compromise grounded on effective tax
administration and those grounded on doubt as to collectibility
based on special circumstances.
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