Donald and Yvonne Clayton - Page 24

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          her consideration and by not informing petitioners of the                   
          contents of the notice of determination before it was issued.  We           
          disagree on both counts.  We do not believe that Cochran abused             
          her discretion by rejecting petitioners’ offer-in-compromise                
          simply because she may have established a due date for submission           
          of information.  See Barnes v. Commissioner, T.C. Memo. 2006-150.           
          By their own admission, petitioners’ counsel failed to meet many            
          of Cochran’s deadlines (before Cochran extended them) because               
          petitioners’ counsel was pressed by other business from their               
          acceptance of many cases involving other partners of the Hoyt               
          partnerships.  Nor do we believe that Cochran abused her                    
          discretion by rejecting petitioners’ offer-in-compromise simply             
          because she may not have discussed with petitioners the contents            
          of the notice of determination (and given them a chance to                  
          dispute it) before issuing the notice of determination to them.             
          Id.; cf. Fargo v. Commissioner, 447 F.3d at 712-713 (holding that           
          Appeals has no duty to negotiate with a taxpayer before rejecting           
          the taxpayer’s offer-in-compromise).  In this regard, we also               
          disagree with petitioners that Cochran had an affirmative duty to           
          attempt unilaterally to find additional facts in support of their           
          case as soon as she came to the conclusion that their offer-in-             
          compromise should be denied.  See Barnes v. Commissioner, supra.            
               We hold that Appeals did not abuse its discretion in                   
          rejecting petitioners’ $100,000 offer-in-compromise.  In so                 






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