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were seeking an offer-in-compromise based on doubt as to
liability, doubt as to liability is no longer at issue.9
The Secretary may compromise a tax liability based on doubt
as to collectibility where the taxpayer’s assets and income are
less than the full amount of the assessed liability. Sec.
301.7122-1(b)(2), Proced. & Admin. Regs. Generally, under the
Commissioner’s administrative pronouncements, an offer-in-
compromise based on doubt as to collectibility will be acceptable
only if it reflects the taxpayer’s reasonable collection
potential. Rev. Proc. 2003-71, sec. 4.02(2), 2003-2 C.B. 517,
517. In some cases, the Commissioner will accept an offer of
less than the reasonable collection potential if there are
“special circumstances”. Id. Special circumstances are: (1)
Circumstances demonstrating that the taxpayer would suffer
economic hardship if the IRS were to collect from him an amount
equal to the reasonable collection potential; or (2)
circumstances justifying acceptance of an amount less than the
reasonable collection potential of the case based on public
policy or equity considerations. See IRM sec. 5.8.4.3(4).
9 Petitioners did not present testimony or exhibits to
substantiate doubt as to liability. Further, petitioners did not
address doubt as to liability in their opening brief. In his
answering brief, respondent asserts that petitioners abandoned
their doubt as to liability argument. Petitioners did not
challenge this assertion in their reply brief. Based on the
above, we conclude that petitioners have abandoned their doubt as
to liability argument.
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