Estate of Carol Andrews, Deceased, Robert Andrews, Special Administrator, and Robert Andrews - Page 13

                                       - 13 -                                         
          circumstances justifying acceptance of an amount less than the              
          reasonable collection potential of the case based on public                 
          policy or equity considerations.  See Internal Revenue Manual               
          (IRM) sec.  However, in accordance with the                     
          Commissioner’s guidelines, an offer-in-compromise based on doubt            
          as to collectibility with special circumstances should not be               
          accepted, even when economic hardship or considerations of public           
          policy or equity circumstances are identified, if the taxpayer              
          does not offer an acceptable amount.  See IRM sec.           
          and .2(12).                                                                 
               The Secretary may also compromise a tax liability on the               
          ground of effective tax administration when:  (1) Collection of             
          the full liability will create economic hardship; or (2)                    
          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 (3)                  
          compromise of the liability would not undermine compliance by               
          taxpayers with the tax laws.  Sec. 301.7122-1(b)(3), Proced. &              
          Admin. Regs.                                                                
               Petitioners proposed an offer-in-compromise based                      
          alternatively on doubt as to collectibility with special                    
          circumstances or effective tax administration.  Petitioners                 
          offered to pay $25,000 to compromise their outstanding tax                  
          liabilities for 1981 through 1996, which they estimated to be               

Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011