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Section 7122(a) authorizes the Secretary to compromise any
civil case arising under the internal revenue laws. Grounds for
compromise include doubt as to collectibility, which “exists in
any case where the taxpayer’s assets and income are less than the
full amount of the liability.” Sec. 301.7122-1(b)(2), Proced. &
Admin. Regs. Evaluation of an OIC based on doubt as to
collectibility requires complete financial information from the
taxpayer. See Roman v. Commissioner, T.C. Memo. 2004-20. Where
the taxpayer refuses to provide such information, the
Commissioner’s rejection of an OIC does not constitute abuse of
discretion. See id.; Willis v. Commissioner, T.C. Memo.
2003-302; see also sec. 301.7122-1(d)(2), Proced. & Admin. Regs.
Petitioner failed to provide complete financial information
to respondent. For example, petitioner did not mention his role
as president of the corporation in his OIC and failed to supply
information on this subject when requested to do so.3 Petitioner
contends he did not have to provide such information because he
has no ownership interest in the corporation. Even if this is
true, however, respondent was entitled to request information to
3 As mentioned supra, petitioner contends he did not receive
respondent’s August 2004 letter, which requests information about
any corporation in which petitioner was an officer or
shareholder. Even if this is true, however, both the Form 433-A,
Collection Information Statement for Wage Earners and Self-
Employed Individuals, and respondent’s April 2004 letter request
employment information. Petitioner nevertheless failed to
provide information about the corporation.
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Last modified: May 25, 2011