- 10 -
From the refinance of his residence petitioner received a net
amount of $25,158. Petitioner used $11,000 to pay delinquent
child support and transferred the remaining $14,158 to his
professional corporation (which was used to pay a supplier,
malpractice insurance, delinquent telephone charges, and
payroll).
Also in his response to the preliminary determination,
petitioner asserted that the attorney’s fees were an allowable
necessary expense because they were necessary for his
representation before the IRS with respect to his current tax
matters. He closed the letter by saying he thought negotiation
of an offer-in-compromise was possible given his belief that he
did not dissipate assets and that he is allowed to claim
attorney’s fees as an expense.
On March 8, 2005, the settlement officer sent a letter to
petitioner stating that her positions on the dissipated assets
and attorney’s fees remained unchanged. Petitioner did not
respond to this letter and never increased his offer.
On April 8, 2005, Appeals issued petitioner a notice of
determination sustaining the proposed collection actions. The
summary of determination concluded that petitioner’s proposed
collection alternative was not a viable option. The notice
indicated Appeals’ finding that the IRS could collect more than
the $30,000 offer. The notice referred to the discovery of the
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: November 10, 2007