- 12 -
equity ground because the case “fails to meet the criteria for
such consideration”.
Respondent concluded that petitioners did not offer an
acceptable collection alternative, that all requirements of law
and administrative procedure had been met, and that the proposed
collection action could proceed.
In response to the notice of determination, petitioners
filed a petition with this Court on October 29, 2004.
OPINION
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
(9th Cir. 2006), affg. T.C. Memo. 2004-13; sec. 301.7122-1(c)(1),
Proced. & Admin. Regs.
The regulations under section 7122(a) set forth three
grounds for the compromise of a tax liability: (1) Doubt as to
liability; (2) doubt as to collectibility; or (3) promotion of
effective tax administration. Sec. 301.7122-1(b), Proced. &
Admin. Regs. Doubt as to liability is not at issue in this
case.11
11 While petitioners contest their liability for sec.
6621(c) interest, see supra note 2, they did not raise doubt as
to liability as a basis for their offer-in-compromise.
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