- 8 -
OPINION
Section 7122(a) provides that “The Secretary may compromise
any civil * * * case arising under the internal revenue laws”.
Whether to accept an offer-in-compromise is left to the
Secretary’s discretion. Fargo v. Commissioner, 447 F.3d 706, 712
(9th Cir. 2006), affg. T.C. Memo. 2004-13; sec. 301.7122-1(c)(1),
Proced. & Admin. Regs.
The regulations under section 7122(a) set forth three
grounds for the compromise of a tax liability: (1) Doubt as to
liability; (2) doubt as to collectibility; or (3) promotion of
effective tax administration. Sec. 301.7122-1(b), Proced. &
Admin. Regs. Doubt as to liability and doubt as to
collectibility are not at issue in this case.9
As pertinent here, the Secretary may compromise a tax
liability on the ground of effective tax administration when:
(1) Exceptional circumstances exist such that collection of the
full liability would undermine public confidence that the tax
laws are being administered in a fair and equitable manner; and
(2) compromise of the liability would not undermine compliance by
9 While petitioner disputes his liability for sec. 6621(c)
interest, see supra note 2, he did not raise doubt as to
liability as a grounds for compromise.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011