Roger and Lora Carter - Page 12

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          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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