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February 4, 2004, letter outlining petitioner’s position. In his
review of this case, Mr. Vander Linden considered all of the
information and arguments presented by petitioner at the hearing,
in the letter, and contained in the administrative record.
On May 10, 2005, respondent sent petitioner a Supplemental
Notice of Determination Concerning Collection Action(s) Under
Section 6320 and/or 6330 (supplemental notice of determination).
Respondent determined that: (1) Petitioner did not qualify for
an effective tax administration offer-in-compromise; and (2) any
compromise relating to 1994, 1995, and 1996 could not be
considered because the taxes, penalties, and interest for those
years had not been assessed. As a result, respondent sustained
the proposed collection action.
OPINION
Section 7122(a) provides that “the Secretary may compromise
any civil * * * case arising under the internal revenue laws”.
Whether to accept an offer-in-compromise is left to the
Secretary’s discretion. Fargo v. Commissioner, 447 F.3d 706, 712
(9th Cir. 2006), affg. T.C. Memo. 2004-13; sec. 301.7122-1(c)(1),
Proced. & Admin. Regs.
The regulations set forth three grounds for the compromise
of a tax liability: (1) Doubt as to liability; (2) doubt as to
collectibility; or (3) promotion of effective tax administration.
Sec. 301.7122-1(b), Proced. & Admin. Regs. As pertinent here,
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