- 8 - administrative hearing or otherwise brought to the attention of the Appeals Office. Magana v. Commissioner, 118 T.C. 488, 493 (2002); sec. 301.6320-1(f)(2), Q&A-F5, Proced. & Admin. Regs. The sole collection alternative petitioner proposed was an OIC.4 Section 7122(a) authorizes the Secretary to compromise any civil case arising under the internal revenue laws. As is relevant here, grounds for compromise of a liability include doubt as to collectibility or promotion of effective tax administration. Sec. 301.7122-1(b), Proced. & Admin. Regs. Before discussing each of these grounds, we address respondent’s contention, raised for the first time in his pretrial memorandum, that petitioner’s failure to pay his 2002 tax liability rendered him noncompliant with Federal tax laws. The Court has held that where a taxpayer is not currently in compliance with Federal tax laws, a determination that the taxpayer is not entitled to an OIC does not constitute abuse of discretion. Rodriguez v. Commissioner, T.C. Memo. 2003-153; see also Orum v. Commissioner, 412 F.3d 819, 821 (7th Cir. 2005), affg. 123 T.C. 1 (2004). The Court also has held, however, that 4 Petitioner’s OIC does not address the taxable year 2002. It is unclear whether he later proposed an OIC as a collection alternative for that year. On the basis of our discussion and resolution of the issue for decision, infra, the result in this case will not change if we find that petitioner offered to compromise his 2002 tax liability. We therefore assume, without deciding, that the issue of an OIC for the taxable year 2002 was raised and is properly before the Court.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
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