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As to petitioners’ offer-in-compromise to promote effective tax
administration based on equity and public policy, the notice
states: “When considered under public policy or equity grounds,
the taxpayers’ Effective Tax Administration offer proposal fails
to meet the criteria for such consideration under Internal
Revenue Manual 5.8.11.2.2 * * * [and], therefore, cannot be
considered.” 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
$100,000 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,
with the decision being that the taxpayers have
conceded the interest abatement issue for the years
1982, 1983, 1984, 1985, and 1986.
With respect to the taxpayers’ second area of concern,
the Settlement Officer has evaluated the taxpayers’
$100,000 offer to compromise the underlying liabilities
as a collection alternative to the proposed levy
action. Based on that evaluation, the taxpayers’ offer
of $100,000 could not be recommended for acceptance,
and therefore cannot be considered as a collection
alternative.
In all other respects, the proposed levy action
regarding the taxpayers represents the only efficient
means for collection of the liability at issue in this
case.
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Last modified: May 25, 2011