- 36 - obligations throughout the pendency of their cases before Mr. Skidmore from early 2003 to mid-2004. The notice of determination for 2000 was issued on November 25, 2003, and that for 2001 and 2002 was issued on July 13, 2004. Estimated payments, intended to ensure that current taxes are paid, are a significant component of the Federal tax system, and Mr. Skidmore was entitled to rely on their absence in reaching his conclusions. In fact, petitioners’ circumstances illustrate one of the reasons for requiring current compliance before granting collection alternatives such as an offer-in-compromise or an installment agreement; namely, the risk of pyramiding tax liability. See Orum v. Commissioner, 412 F.3d 819, 821 (7th Cir. 2005), affg. 123 T.C. 1 (2004). As to alleged mitigating circumstances during the years in issue, the Court understands that petitioners had little control over medical exigencies or an industry slowdown. Petitioners claim that these circumstances establish that financial inability, rather than lack of desire, was responsible for their dilatory filings and payments. Again, however, current compliance is most germane. In addition, as Mr. Skidmore noted repeatedly, petitioners’ assertions of financial hardship are difficult to square with the substantial cashflow through their accounts. Mr. Skidmore concluded that petitioners’ broad assertions of business need and use did not satisfactorilyPage: Previous 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 Next
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