- 14 - her response to respondent’s motion, she writes: “I know I’m still responsible for this liability and I am willing to resolve this matter, but I cannot afford $700 per month.” She likewise stated at the hearing that “this case has come about because I do owe the Government money.” Accordingly, we review respondent’s determination to proceed with collection for abuse of discretion. Action constitutes an abuse of discretion under this standard where arbitrary, capricious, or without sound basis in fact or law. Woodral v. Commissioner, 112 T.C. 19, 23 (1999). In her petition, petitioner asks for “an extension on the payment period”, and in her response to the motion for summary judgment she expresses a willingness “to work out another payment plan or an offer in compromise”. Sections 6159 and 7122 govern installment agreements and offers-in-compromise, respectively. Section 6159(a), as in effect at the time petitioner’s case was before the IRS Office of Appeals, provided: “The Secretary is authorized to enter into written agreements with any taxpayer under which such taxpayer is allowed to satisfy liability for payment of any tax in installment payments if the Secretary determines that such agreement will facilitate collection of such liability.” Regulations promulgated under section 6159 grant to the IRS discretion to accept or reject any proposed installment agreement. Sec. 301.6159-1(b)(1)(i), Proced. & Admin. Regs. The IRS has set forth procedures in the Internal Revenue Manual (IRM)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011