Martin and Sharon Smith - Page 13




                                       - 13 -                                         
          125 T.C. 301, 308, 320 (2005), affd. 469 F.3d 27 (1st Cir. 2006).           
          Where we decide the propriety of Appeals’s rejection of an                  
          offer-in-compromise, as we do here, we review the reasoning                 
          underlying that rejection to decide whether the rejection was               
          arbitrary, capricious, or without sound basis in fact or law.               
          We do not substitute our judgment for that of Appeals, and we do            
          not decide independently the amount that we believe would be an             
          acceptable offer-in-compromise.  See Murphy v. Commissioner,                
          supra at 320; Fowler v. Commissioner, T.C. Memo. 2004-163; Fargo            
          v. Commissioner, T.C. Memo. 2004-13, affd. 447 F.3d 706 (9th Cir.           
          2006).  Nor do we usually consider arguments, issues, or other              
          matters raised for the first time at trial, but we limit                    
          ourselves to matter brought to the attention of Appeals.                    
          See Murphy v. Commissioner, supra at 308; Magana v. Commissioner,           
          118 T.C. 488, 493 (2002).  “[E]vidence that * * * [a taxpayer]              
          might have presented at the section 6330 hearing (but chose not             
          to) is not admissible in a trial conducted pursuant to section              
          6330(d)(1) because it is not relevant to the question of whether            
          the Appeals officer abused her discretion.”  Murphy v.                      
          Commissioner, supra at 315.6                                                

               6 In Murphy v. Commissioner, 125 T.C. 301 (2005), affd.                
          469 F.3d 27 (1st Cir. 2006), the Court declined to include in the           
          record external evidence relating to facts not presented to                 
          Appeals.  The Court distinguished Robinette v. Commissioner,                
          123 T.C. 85 (2004), revd. 439 F.3d 455 (8th Cir. 2006), and held            
          that the external evidence was inadmissible in that it was not              
                                                             (continued...)           





Page:  Previous  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next 

Last modified: November 10, 2007