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At the Appeals level, the Miller’s participated in
several teleconferences and a face-to-face conference,
as well as exchanged numerous correspondences with this
office. At no time during Appeals consideration of
this account did the Miller’s present a viable alterna-
tive to resolve their outstanding taxes. The issues
raised by the Miller’s were as follows:
1. They requested relief from penalties and
interest. A review of the account tran-
scripts indicates that they were assessed the
Failure to Pay penalty for both years and the
Estimated Tax Penalty for tax year 2001.
They did not however, provide any documenta-
tion to illustrate why they were unable to
make sufficient estimated tax payments for
2001, or why they were now unable to satisfy
these liabilities. They simply requested to
have the penalties and associated interest
removed from their account because they felt
that they should not have to pay them, as
required by law. They were advised that they
did not meet the reasonable cause criteria to
abate the penalties, and that there were no
current IRS initiatives to waive penalty and
interest assessments on those individuals
owing AMT taxes.
2. They requested to have their future AMT cred-
its offset to pay the current outstanding
liabilities. They were advised that this is
not legal under current tax law legislation,
and that neither the office of Appeals, nor
any other operating division within the IRS
could negotiate such a settlement.
The Miller’s raised no other pertinent issues other
than to state that the application of the AMT was
unfair and inequitable, and they should not be forced
to pay taxes on this “phantom income”.
The Miller’s have never provided financial information
to Appeals as requested. By their own admission, they
have the resources to pay these taxes, but feel that it
would be unfair to make them use their equity in as-
sets, primarily their residence and a retirement ac-
count, to satisfy these debts.
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Last modified: May 25, 2011