- 9 - 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 requiresPage: Previous 1 2 3 4 5 6 7 8 9 10 11 NextLast modified: November 10, 2007