Orlando Bujosa - Page 10




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          Commissioner, T.C. Memo. 2003-288, affd. 436 F.3d 1216 (10th Cir.           
          2006).  Here, the notice of determination concerning collection             
          action was attached to the petition.  Respondent acknowledged on            
          brief that this was a “Petition for Lien or Levy Action under               
          Code Section 6320(c) or 6330(d).”  Further, respondent                      
          contemplated a challenge to the Appeals officer’s rejection of              
          petitioner’s OIC, which was the only subject of the hearing.  So,           
          respondent cannot be considered surprised or prejudiced by the              
          Court’s consideration of this issue.                                        
               We must therefore decide whether respondent’s rejection of             
          petitioner’s offer-in-compromise was an abuse of discretion.                
          Section 7122 provides respondent with the authority to grant an             
          offer-in-compromise as an alternative to collection action.                 
          Respondent grants an OIC when there is a doubt as to the actual             
          tax liability, doubt as to collectibility, or for other purposes            
          relating to effective tax administration.  Sec. 301.7122-1,                 
          Proced. & Admin. Regs.; 1 Administration, Internal Revenue Manual           
          (CCH), sec. 5.8.1.1.2, at 16,253.                                           
               Petitioner’s offer based on doubt as to collectibility was             
          taken under consideration by respondent’s offer specialist.                 
          Doubt as to collectibility “exists in any case where the                    
          taxpayer’s assets and income are less than the full amount of the           
          liability.”  Sec. 301.7122-1(b)(2), Proced. & Admin. Regs.                  
          Evaluation of an OIC based on doubt as to collectibility requires           







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Last modified: November 10, 2007