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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)
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