Martin and Sharon Smith - Page 10




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          efficient collection of taxes with the concern that the proposed            
          levy be no more intrusive than necessary.  As to the former                 
          conclusion, the notice states:                                              
               Taxpayers challenged the proposed enforcement                          
               collection action by levy.                                             
               Taxpayers submitted an Offer in Compromise, Doubt as to                
               Collectibility and Effective Tax Administration, in the                
               amount of $11,552.00 during the CDP proceedings.  The                  
               OIC was not an acceptable collection alternative and                   
               was rejected.                                                          
               Taxpayers did not disclose all assets on the Collection                
               Information Statements attached to the offer.  They did                
               not disclose assets which constituted about 25% of                     
               their net realizable equity.  By not disclosing their                  
               complete financial status, this Appeals Officer is                     
               concerned about their good faith effort to resolve this                
               matter.  They were not forthcoming in establishing                     
               their financial status.                                                
               This Appeals Officer concluded the offer should not be                 
               accepted under doubt as to collectibility because                      
               taxpayers have sufficient assets to pay the assessed                   
               liability.  Further, the offer should not be accepted                  
               under effective tax administration as it would                         
               undermine compliance by taxpayers with the tax laws.                   
               Taxpayers included in the offer years that have                        
               unresolved TEFRA issues, thus the liability has not                    
               been assessed.  During the Collection Due Process                      
               proceedings taxpayers did not resolve the years with                   
               TEFRA issues by entering into settlement agreements.                   
               Taxpayers did not propose any other acceptable                         
               collection alternatives.  Taxpayers declined to pay the                
               outstanding liability.                                                 
               The proposed collection enforcement action by levy is                  
               valid and appropriate.                                                 
          The notice further states:                                                  
               The proposed collection action by levy balances the                    
               need for the efficient collection of taxes with the                    






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Last modified: November 10, 2007