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of Federal Tax Lien that he was in danger of default. As
previously stated, we find that petitioners were in receipt of
written and verbal notice of their default. Moreover, we find
that petitioners were aware that their repeated noncompliance
with the 5-year timely filing requirement placed them in default
on the underlying OIC.
We therefore cannot conclude that respondent acted in an
arbitrary or capricious manner based on the facts of this case.
Petitioners were well aware of their duty to timely file and pay
their taxes for the 5 years following respondent’s acceptance of
the underlying OIC. Petitioners not only failed to timely file
their 1997 Federal tax return; they failed to timely file in each
and every one of the 5 years of the OIC compliance period.
Moreover, respondent attempted on 10 occasions over 3 years to
contact petitioners at their Egg Harbor residence to craft a
resolution to petitioners’ outstanding liability stemming from
taxable year 1994. In these years, respondent attempted to work
with petitioners, despite their repeated failures to timely file.
Petitioner husband, by his own admission, testified that
petitioners did not respond to these attempts because they
“lacked the money to pay.” Petitioners then begged this Court to
consider that they are “desperate” because they cannot afford to
pay the amount now sought by respondent with respect to 1994.
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