Gary W. McDonough - Page 26

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         affirming our decisions to that effect.  See Mortensen v.                    
         Commissioner, 440 F.3d 375 (6th Cir. 2006), affg. T.C. Memo.                 
         2004-279; Van Scoten v. Commissioner, 439 F.3d 1243 (10th Cir.               
         2006), affg. T.C. Memo. 2004-275.                                            
              Ms. Cochran testified that she considered all of                        
         petitioner’s assertions, including the numerous letters and                  
         exhibits.  Nevertheless, Ms. Cochran determined that petitioner              
         did not qualify for an offer-in-compromise.                                  
              The mere fact that petitioner’s “equitable facts” did not               
         persuade respondent to accept petitioner’s offer-in-compromise               
         does not mean that those assertions were not considered.  The                
         notice of determination and Ms. Cochran’s testimony demonstrate              
         respondent’s clear understanding and careful consideration of the            
         facts and circumstances of petitioner’s case.  The Court finds               
         that respondent’s determination that the “equitable facts” did               
         not justify acceptance of petitioner’s offer-in-compromise was               
         not arbitrary or capricious and thus was not an abuse of                     
         discretion.                                                                  
              The Court finds that compromising petitioner’s case on                  
         grounds of public policy or equity would not enhance voluntary               
         compliance by other taxpayers.  A compromise on that basis would             
         place the Government in the unenviable role of an insurer against            
         poor business decisions by taxpayers, reducing the incentive for             
         taxpayers to investigate thoroughly the consequences of                      






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