Gary W. McDonough - Page 21

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         offer-in-compromise; (2) respondent’s reliance on an example in              
         the Internal Revenue Manual was improper; and (3) respondent                 
         failed to consider petitioner’s other “equitable facts”.                     
                   1.   Longstanding Case                                             
              Petitioner asserts that the legislative history requires                
         respondent to resolve “longstanding” cases by forgiving penalties            
         and interest which would otherwise apply.  Petitioner argues                 
         that, because this is a longstanding case, respondent abused his             
         discretion by failing to accept his offer-in-compromise.                     
              Petitioner’s argument is essentially the same one considered            
         and rejected by the Court of Appeals for the Ninth Circuit in                
         Fargo v. Commissioner, 447 F.3d at 711-712.  See also Keller v.              
         Commissioner, T.C. Memo. 2006-166; Barnes v. Commissioner, supra.            
         The Court rejects petitioner’s argument for the same reasons                 
         stated by the Court of Appeals.  The Court adds that petitioner’s            
         counsel participated in the appeal in Fargo as counsel for the               
         amici.  On brief, petitioner suggests that the Court of Appeals              
         knowingly wrote its opinion in Fargo in such a way as to                     
         distinguish that case from the cases of counsel’s similarly                  
         situated clients (e.g., petitioner), and to otherwise allow those            
         clients’ liabilities for penalties and interest to be forgiven.              
         The Court does not read the opinion of the Court of Appeals in               
         Fargo to support that conclusion.  See Keller v. Commissioner,               
         supra; Barnes v. Commissioner, supra.                                        

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