- 8 - 5.8.11.2.5, states that petitioners’ offer also does not meet the Commissioner’s guidelines for consideration as an offer-in- compromise to promote effective tax administration. As to petitioners’ offer-in-compromise due to doubt as to collectibility, the notice states more specifically that the taxpayers [petitioners] have the ability to pay more than the offer amount from the equity in their assets while still meeting their necessary basic living expenses, in accordance with IRM 5.8.5.5.1. The taxpayers have an ability to pay substantially more than the amount being offered, as per the guidelines of Internal Revenue Manual 5.8.5.3.1. The taxpayers’ circumstances have been documented and considered but are insufficient to permit acceptance of an offer amount that is, at best, less than 30% of the RCP [reasonable collection potential] ($32,000/$107,617). As to petitioners’ offer-in-compromise to promote effective tax administration, the notice states: Analysis of the taxpayers’ finances shows that the taxpayers’ equity in assets plus present and future income are less than the assessed amounts to be compromised. The taxpayers, therefore, fail to meet the requirements for consideration of an offer in compromise based on Effective Tax Administration, as per the guidelines of Internal Revenue Manual 5.8.11.1(2). The notice further states as to Cochran’s balancing of efficient collection with the legitimate concerns of taxpayers that The taxpayers’ concerns about the proposed collection action generally fall within two areas: (1) pending litigation (the interest abatement case) and (2) a viable collection alternative in the form of their $32,000 offer in compromise. The Settlement Officer has balanced the taxpayers’ first area of concern by confirming that the taxpayers’ interest abatement case has been decided in Tax Court,Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011