Gary and Johnean Hansen - Page 9

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          the notice states:  “the taxpayers’ Effective Tax Administration            
          offer proposal fails to meet the criteria for such consideration            
          under Internal Revenue Manual * * * [and], therefore,            
          cannot be considered further.”  The notice further states as to             
          Cochran’s balancing of efficient collection with the legitimate             
          concerns of taxpayers that                                                  
               The taxpayers’ concerns about the proposed collection                  
               action generally fall into two areas: (1) pending                      
               litigation (the interest abatement case) and (2) a                     
               viable collection alternative in the form of their                     
               $90,258 offer in compromise.                                           
               The Settlement Officer has balanced the taxpayers’                     
               first area of concern by withholding further collection                
               activity regarding [sic] such time as the pending                      
               interest abatement case regarding 1989 (for the accrued                
               interest still unpaid) or the pending TEFRA penalty                    
               case regarding 1989 (for the accrued failure to pay                    
               penalty) is decided.                                                   
               With respect to the taxpayers’ second area of concern, the             
               Settlement Officer has evaluated the taxpayers’ $90,258                
               offer to compromise the underlying liabilities as a                    
               collection alternative to the proposed levy action.  Based             
               on that evaluation, the taxpayers’ offer of $90,258 could              
               not be recommended for acceptance, and therefore cannot be             
               considered as a collection alternative.                                
          The notice states that petitioners have neither offered an                  
          argument nor cited any authority to permit Appeals to deviate               
          from the provisions of the IRM.                                             
               As to petitioners’ claim at the hearing for an interest                
          abatement, Cochran ascertained that petitioners had filed the               
          case in this Court seeking an abatement of interest under section           
          6404(e) for 1989.  Cochran stated in the notice of determination            

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Last modified: May 25, 2011