- 5 -
Discussion
Offer-in-Compromise
Petitioner’s only argument is that it was an abuse of
discretion for respondent to decline to accept his OIC predicated
on doubt as to collectibility.
Under section 7122, the Secretary is authorized to
compromise civil or criminal tax liabilities. Doubt as to
collectibility exists where the taxpayer’s assets and income are
less than the full amount of the tax liability. Sec. 301.7122-
1(b)(2), Proced. & Admin. Regs. In determining ability to pay,
taxpayers are allowed to retain sufficient funds to pay “basic
living expenses” determined under the individual’s facts and
circumstances. Sec. 301.7122-1(c)(2), Proced & Admin. Regs.
Guidelines published by the Secretary on national and local
living expense standards are to be taken into account. Id.
Section 7122 provides for administrative but not judicial
review of a rejection of a proposed OIC. Sec. 7122(d); sec.
301.7122-1(f)(5), Proced & Admin. Regs.; see also Olsen v. United
States, 326 F. Supp. 2d 184, 188 (D. Mass. 2004), affd. 414 F.3d
144, 156-157 (1st Cir. 2005).
Section 6330
Section 6330 generally provides that the Commissioner cannot
proceed with collection by way of a levy until the taxpayer has
been given notice and the opportunity for an administrative
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011