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had reasonable cause for his failure to pay the taxes; (2) the
Internal Revenue Service (IRS) should have accepted his offer-in-
compromise based on doubt as to collectibility because of the
possibility of discharge of his taxes in the event he filed for
bankruptcy; and (3) alternatively, in the event his offer-in-
compromise was not accepted, the IRS should have allowed him to
pay his tax liability in installments.
Petitioner’s section 6330 hearing was conducted by means of
a face-to-face meeting, correspondence, and telephone
conversations with a settlement officer in respondent’s Appeals
Office (the settlement officer). On November 2, 2004, the IRS
received petitioner’s offer to compromise his total tax liability
for 1997, 1998, 1999, 2000, and 2001 for $70,000.7 On December 8,
2005, following petitioner’s submission of additional information
in response to requests by respondent, the settlement officer
advised petitioner that petitioner was ineligible for an offer-
in-compromise because petitioner had the ability to fully pay his
income tax liability over 48 months. On December 22, 2005, the
settlement officer wrote a letter to petitioner explaining, among
other things: (1) That petitioner had not as yet provided any
6(...continued)
actually are to additions to tax under sec. 6651(a)(1) and (2)
and sec. 6654. References in this opinion to additions to tax
relate to one or more, as appropriate. Petitioner does not seek
abatement of interest.
7Tax year 2001 is not at issue herein.
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