- 22 -
petitioner’s unpaid 2002 income tax liability. In that recommen-
dation, the settlement officer stated in pertinent part:
SUMMARY AND RECOMMENDATION
The taxpayer sought to compromise, under authority of
IRC 7122, individual income and employment taxes shown
on the attachment for the sum of $10,000.00, with
$3,000.00 to be paid within ninety days of notice of
acceptance, and $200.00 per month for a term of 35
months. This, the taxpayer’s first offer, submitted in
connection with his Collection Due Process case, was
based solely on the basis of collectibility; effective
tax administration or doubt as to liability was not an
issue.
I recommend that the offer be rejected, since a greater
amount than the amount offered appears to be collect-
ible.
BACKGROUND
Mr. Mootz (59), an unmarried person, has been self
employed in office supply business for many years, with
employment tax deficiencies going back to 1997. He has
an unremarkable record of compliance with filing and
payment of employment taxes, which comprise the bulk of
the taxes at issue. He allegedly has had no employees
since mid-2003.
There are no minor children in the home, and no health
issues that would support an Effective Tax Administra-
tion approach. He lives in a home that he owns with
his brother, each having a 50% interest. They also own
another parcel with the same manner of ownership.
Although Mr. Mootz alleges that his brother loaned him
the funds to obtain the 50% ownership interests, no
mortgages of record exist to memorialize any such
arrangement, so filed Notices of Federal Tax Lien enjoy
priority over the alleged unsecured debt and secure the
government’s interest in both properties.
DISCUSSION AND ANALYSIS
The examiner determined that the taxpayer had ability
to pay $132,828, with Net Realizable Equity of $121,608
coming from $85,400 equity in real properties, along
Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
Last modified: November 10, 2007