Kevin F. Foley and Shula K. Foley - Page 6

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          collection alternatives and challenges to the appropriateness of            
          the collection action.  Sec. 6330(c).                                       
               A taxpayer may request that his Federal income tax liability           
          be designated as currently not collectible.  Such status may be             
          available where, based on the taxpayer’s assets, equity, income,            
          and expenses, the taxpayer has no apparent ability to make                  
          payments on the outstanding tax liability.  2 Administration,               
          Internal Revenue Manual (CCH), sec., at 17,810.  See             
          also Willis v. Commissioner, T.C. Memo. 2003-302.                           
               In a number of situations, courts have held that it will not           
          be regarded as an abuse of discretion where an Appeals officer              
          refuses to delay a proposed collection action to allow a taxpayer           
          to sell an asset.  See Castillo v. Commissioner, T.C. Memo. 2004-           
          238; Clawson v. Commissioner, T.C. Memo. 2004-106; Medlock v.               
          United States, 325 F. Supp. 2d 1064, 1077-1079 (C.D. Cal. 2003).            
               Herein, the record establishes that respondent’s Appeals               
          officer did not abuse his discretion in sustaining the proposed             
          levy.  The Appeals officer considered petitioners’ request to               
          designate their liability as currently not collectible and                  
          correctly determined that it was not merited because of the                 
          equity in petitioners’ residence.  Further, the Appeals officer             
          did not abuse his discretion in rejecting petitioners’ request to           
          postpone the levy until after June 2007 to allow petitioners to             
          refinance or sell their residence.                                          

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