-5-
years in issue was an abuse of discretion. We disagree. Section
7122(c)(1) provides that the Secretary shall prescribe guidelines
for the Internal Revenue Service (IRS) to use in determining
whether to accept an OIC. The decision to accept or reject an
OIC, as well as the terms and conditions to which the IRS agrees,
is left to the discretion of the Secretary. Sec. 301.7122-
1(c)(1), Proced. & Admin. Regs.
Petitioners contend that returning their OIC for additional
information was arbitrary and capricious. We disagree.
If an offer accepted for processing does not contain
sufficient information to permit the IRS to evaluate whether the
offer should be accepted, the IRS will request that the taxpayer
provide the needed additional information. Sec. 301.7122-
1(d)(2), Proced. & Admin. Regs. On three separate occasions,
respondent’s OS contacted petitioners to request additional
information. The OS explained that this additional information
was necessary to account for discrepancies between petitioners’
Form 433-A and the information they had previously submitted.
Petitioners failed to provide the requested information. If the
taxpayer does not submit the requested information to the IRS
within a reasonable time after a request, the IRS may return the
offer to the taxpayer. Id. The decision not to process
petitioners’ OIC on account of their failure to provide
additional information was consistent with the prescribed
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