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In response to the notice of determination, petitioner filed
a petition with this Court on November 1, 2004.
OPINION
Section 7122(a) provides that “The Secretary may compromise
any civil * * * case arising under the internal revenue laws”.
Whether to accept an offer-in-compromise is left to the
Secretary’s discretion. Fargo v. Commissioner, 447 F.3d 706, 712
(9th Cir. 2006), affg. T.C. Memo. 2004-13; sec. 301.7122-1(c)(1),
Proced. & Admin. Regs.
The regulations under section 7122(a) set forth three
grounds for the compromise of a tax liability: (1) Doubt as to
liability; (2) doubt as to collectibility; or (3) promotion of
effective tax administration. Sec. 301.7122-1(b), Proced. &
Admin. Regs. Doubt as to liability is not at issue in this
case.9
Petitioner proposed an offer-in-compromise based
alternatively on doubt as to collectibility with special
circumstances or effective tax administration. Petitioner
offered to pay $120,500 to compromise his outstanding tax
liabilities for 1981 through 1996, which totaled at least
9 While petitioner contests his liability for sec. 6621(c)
interest, see supra note 2, he did not raise doubt as to
liability as a basis for his offer-in-compromise.
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