- 16 - In the February 28, 2005, letter, petitioners stated: The taxpayers would like to substantially increase the Offer amount and abandon their special circumstances arguments related to retirement, medical conditions, and the fact that they are victims of a convicted felon. They would like to offer the full collection potential * * * of $150,000 contingent on acceptance of the payment on November 1, 2006. [Emphasis added.] Contrary to petitioners’ assertion, this letter does not state that the abandonment of their special circumstances arguments is contingent upon acceptance of their increased offer amount. Instead, the letter communicates petitioners’ intention to do two things, “[1] substantially increase the offer amount and [2] abandon their special circumstances arguments”. (Emphasis added.) The only contingency expressed is that they would increase the offer amount only if the payment would be accepted on November 1, 2006. In addition, Mr. Owens credibly testified that he did not recall petitioners’ stating that their abandonment of the special circumstances argument was contingent upon acceptance of the increased offer amount. Given the above- quoted language, it was not arbitrary or capricious for Mr. Owens to conclude that petitioners had abandoned their doubt as to collectibility with special circumstances and effective tax administration arguments. Even assuming arguendo that Mr. Owens should have made a final determination with respect to petitioners’ doubt as to collectibility with special circumstances and effective taxPage: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
Last modified: May 25, 2011