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2000 year. Respondent’s Final Notice contained the following
“Summary of Determination” (Summary), quoted here in its
entirety:
Summary of Determination
Although we addressed each of your issues we could not
reach an agreement. Based on the case file the issuing
of the Final Notice - Notice of Intent to Levy and
Notice Of Your Right To A Hearing is sustained.
As is apparent, the Summary does not disclose the issues to
which it refers. However, on November 8, 2003, respondent’s
settlement officer had issued an Appeals Case Memorandum which
explained in detail respondent’s reasons for rejecting
petitioner’s OIC, as follows:
SUMMARY AND RECOMMENDATION
The taxpayer is seeking to compromise, under the
authority of Section 7122 of the Internal Revenue Code,
and as amended by the Restructuring and Reform Act of
1998 to include provisions under Effective Tax
Administration (ETA), the unpaid taxes plus all
statutory additions, relating to the Individual Income
Tax Return, Form 1040, filed Married filing Separate
for the calendar year ending December 31, 2000.
Mrs. Wai’s Offer was submitted solely on the premise of
the inequity and unfairness of the assessment of
Alternative Minimum Tax (AMT) that she was subject to
for tax year 2000 as a result of exercising stock
options. Her offer, based on ETA, focused on the fact
that had she filed jointly with her husband for this
year, the amount of her AMT tax would not only have
been significantly less, but it would have essentially
been paid in full. Her Power of Attorney, John S.
Harper, therefore reasoned that the provisions of IRC
6015(f) should be applied in consideration of the
Offer.
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