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proposed installment agreement by June 20, 2002, would result in
the issuance of a determination letter sustaining the proposed
levy.
On June 18, 2002, Mr. Lemann sent a letter to the Appeals
officer acknowledging and rejecting the proposed installment
agreement. The letter read: "I simply cannot afford the payments
you propose." The letter offered no further collection
alternatives to the levy.
On July 16, 2002, a Notice of Determination was issued to
petitioners which determined that the proposed levy was
appropriate. The determination concluded: (1) That all
requirements of applicable law and administrative procedures had
been met; (2) that petitioners' proposed collection alternative
of monthly installment payments of $1,500 was not acceptable
because it would not result in full payment of the outstanding
tax liabilities within the applicable periods of limitation on
collection; (3) that petitioners' $67,000 offer-in-compromise
based on doubt as to collectibility was unacceptable given that
their net equity in assets and future income were sufficient to
pay their outstanding tax liabilities in full;8 and (4) that, in
light of petitioners' refusal to accept the installment agreement
8 The Appeals officer's case memorandum indicates that he,
like the offer specialist, reached his conclusions regarding
petitioners' ability to pay without relying on petitioners'
interests in any family corporations or in the B. Lemann
Building.
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Last modified: May 25, 2011