- 10 - that she had decided to stay collection activity relating to interest amounts while petitioners’ interest abatement case for 1989 was pending in this Court. OPINION This case is another in a long list of cases brought in this Court involving respondent’s proposal to levy on the assets of a partner in a Hoyt partnership to collect Federal income taxes attributable to the partner’s participation in the partnership. Petitioners argue that Appeals was required to let them pay $90,258 to compromise their estimated $260,143 Federal income tax liability for 1987 through 1998. Where an underlying tax liability is not at issue in a case invoking our jurisdiction under section 6330(d), we review the determination of Appeals for abuse of discretion. See Sego v. Commissioner, 114 T.C. 604, 610 (2000); see also Clayton v. Commissioner, T.C. Memo. 2006-188; Barnes v. Commissioner, T.C. Memo. 2006-150. We reject the determination of Appeals only if the determination was arbitrary, capricious, or without sound basis in fact or law. See Cox v. Commissioner, 126 T.C. 237, 255 (2006); Murphy v. Commissioner, 125 T.C. 301, 308, 320 (2005), affd. 469 F.3d 27 (1st Cir. 2006). Where, as here, we decide the propriety of Appeals’s rejection of an offer-in-compromise, we review the reasoning underlying that rejection to decide whether the rejection was arbitrary, capricious, or without sound basis in fact or law.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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