David L. Samuel - Page 14




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               At the hearing, taxpayers may raise challenges to “the                 
          appropriateness of collection actions” and may make “offers of              
          collection alternatives, which may include the posting of a bond,           
          the substitution of other assets, an installment agreement, or an           
          offer-in-compromise.”  Sec. 6330(c)(2)(A).  The Appeals officer             
          must consider those issues, verify that the requirements of                 
          applicable law and administrative procedures have been met, and             
          consider “whether any proposed collection action balances the               
          need for the efficient collection of taxes with the legitimate              
          concern of the person [involved] that any collection action be no           
          more intrusive than necessary.”  Sec. 6330(c)(3)(C).  As his                
          collection alternative, petitioner chose to make an offer-in-               
          compromise.  In the case before us, petitioner disputes                     
          respondent’s rejection of his offer-in-compromise.                          
               Section 7122(a) authorizes the Secretary to compromise any             
          civil or criminal case arising under the internal revenue laws.             
          Section 7122(c) provides that the Secretary shall prescribe                 
          guidelines for evaluation of whether an offer-in-compromise                 
          should be accepted.  The decision whether to accept or reject 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 section 7122 regulations set forth three grounds for               
          compromise of a taxpayer’s liability.  These grounds are doubt as           







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