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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 5.8.11.2.2 * * * [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