Ronald J. and June M. Speltz - Page 11

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                    SEC. 7122(c).  Standards for Evaluation of                        
               Offers.--                                                              
                         (1) In general.–-The Secretary shall                         
                    prescribe guidelines for officers and employees of                
                    the Internal Revenue Service to determine whether                 
                    an offer-in-compromise is adequate and should be                  
                    accepted to resolve a dispute.                                    
                         (2) Allowances for basic living expenses.--                  
                              (A) In general.–-In prescribing                         
                         guidelines under paragraph (1), the Secretary                
                         shall develop and publish schedules of                       
                         national and local allowances designed to                    
                         provide that taxpayers entering into a                       
                         compromise have an adequate means to provide                 
                         for basic living expenses.                                   
                              (B) Use of schedules.–-The guidelines                   
                         shall provide that officers and employees of                 
                         the Internal Revenue Service shall determine,                
                         on the basis of the facts and circumstances                  
                         of each taxpayer, whether the use of the                     
                         schedules published under subparagraph (A) is                
                         appropriate and shall not use the schedules                  
                         to the extent such use would result in the                   
                         taxpayer not having adequate means to provide                
                         for basic living expenses.                                   
                         (3) Special rules relating to treatment of                   
                    offers.–-The guidelines under paragraph (1) shall                 
                    provide that--                                                    
                              (A) an officer or employee of the                       
                         Internal Revenue Service shall not reject an                 
                         offer-in-compromise from a low-income                        
                         taxpayer solely on the basis of the amount of                
                         the offer; and                                               
                              (B) in the case of an offer-in-                         
                         compromise which relates only to issues of                   
                         liability of the taxpayer--                                  
                                   (i) such offer shall not be                        
                              rejected solely because the Secretary is                
                              unable to locate the taxpayer’s return                  






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