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The Appeals officer balanced the need for efficient
collection of taxes against petitioners’ concern over the NFTL’s
intrusiveness. The Appeals officer testified that the lien was
filed to protect the Government’s interest: his research
indicated that petitioners were subject to the claims of
competing creditors and petitioners could become liable to the
State of New York for additional tax for the same year. The
Appeals officer testified that since petitioners’ OIC had been
rejected, he concluded that an installment agreement was in their
best interest because penalties and interest were accruing during
the pendency of the IRS’s acceptance, and the installment
agreement would forestall the IRS’s proposed levy action.
Finally, Form 656, Offer in Compromise, which petitioners
signed, specifically states that an NFTL “may be filed at any
time while your offer is being considered”.
Therefore, the Court concludes that respondent’s Appeals
officer did not abuse his discretion in upholding the NFTL.
Accordingly, respondent’s determination is sustained.
2. Withdrawal of the NFTL
In pertinent part, section 6323(j) provides that the IRS may
withdraw an NFTL if it determines: (1) The filing of the NFTL
was premature or not in accordance with administrative
procedures; (2) the taxpayer has entered into an installment
agreement, unless the agreement provides otherwise; (3)
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Last modified: March 27, 2008