Estate of Carol Andrews, Deceased, Robert Andrews, Special Administrator, and Robert Andrews - Page 11

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               Because petitioners had the ability to pay substantially               
          more than the amount offered, respondent rejected their offer-in-           
          compromise based on doubt as to collectibility with special                 
          circumstances.  Respondent also rejected petitioners’ effective             
          tax administration offer-in-compromise based on economic hardship           
          because they had the ability to pay their tax liability in full.            
          Finally, respondent rejected petitioners’ effective tax                     
          administration offer-in-compromise based on public policy or                
          equity ground because the case “fails to meet the criteria for              
          such consideration”.                                                        
               Respondent determined that petitioners did not offer an                
          acceptable collection alternative and that all requirements of              
          law and administrative procedure had been met.  Respondent                  
          concluded that the proposed collection action could proceed, but            
          that any activity against Mr. Andrews’s assets should be stayed             
          until his pending innocent spouse case had been decided.                    
               In response to the notice of determination, petitioners                
          filed a petition with this Court on September 27, 2004.                     
               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           

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Last modified: May 25, 2011