Kevin F. Foley and Shula K. Foley - Page 7

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               We note that petitioners purchased a new residence with                
          $40,522 in cash at a time when they owed a substantial tax                  
          liability.  See Steinberg v. Commissioner, T.C. Memo. 2006-217              
          (no abuse of discretion in rejecting an offer-in-compromise where           
          taxpayers spent $100,000 on a residence down payment).                      
               We are not aware of any reason why petitioners did not                 
          attempt to refinance or to sell their residence before June 2007            
          as recommended by respondent’s Appeals officer to pay their                 
          outstanding 1999 Federal income tax liability.  If respondent’s             
          tax lien inhibited petitioners from refinancing or selling their            
          residence, petitioners could have requested respondent to                   
          subordinate the tax lien under section 6325(d) to facilitate the            
          refinancing or sale.  There is no indication that petitioners               
          made such a request.                                                        
               For the first time in their summary judgment motion,                   
          petitioners allege that respondent’s Appeals officer abused his             
          discretion by failing to properly balance the need for efficient            
          collection of taxes with the concern that a collection action be            
          no more intrusive than necessary.  Petitioners’ argument fails.             
          As stated, petitioners never requested an installment agreement             
          nor did they make an offer-in-compromise, yet the Appeals officer           
          considered these collection alternatives and correctly concluded            

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