Henry M. Lloyd - Page 46




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               Service returned the offer in error (for an alleged                    
               underpayment of a small estimated tax penalty which the                
               Petitioner disputed) and issued levies.  The Petitioner                
               then filed a CDP hearing request.                                      
                    Upon receipt of the CDP hearing request, the                      
               Settlement Officer abused her discretion by requiring                  
               the Petitioner to submit a new offer, instead of rein-                 
               stating the existing offer as required by Regulation                   
               §301.6330-1(e)(1).  On September 6, 2005, exactly one                  
               year after the first RCP determination * * * a second                  
               IRS Offer Specialist looking at the same financial                     
               information determined that the Petitioner’s RCP was                   
               $979,527.                                                              
               Although not altogether clear, it appears that petitioner is           
          arguing that the settlement officer abused the settlement offi-             
          cer’s discretion by (1) not accepting as petitioner’s reasonable            
          collection potential (RCP) the amount calculated by the first               
          offer specialist in connection with petitioner’s September 29,              
          2004 offer-in-compromise and (2)(a) instead requiring petitioner            
          to submit a new, updated offer-in-compromise (i.e., petitioner’s            
          June 24, 2005 offer-in-compromise) accompanied by a new, updated            
          Form 433-A (i.e., petitioner’s June 24, 2005 Form 433-A) and                
          (b) determining as petitioner’s RCP an amount different from the            
          amount of petitioner’s RCP that the first offer specialist                  
          determined.                                                                 
               In support of the foregoing argument, petitioner relies on             
          section 301.6330-1(e)(1), Proced. & Admin. Regs., as in effect              
          with respect to requests for Appeals Office hearings made before            
          November 16, 2006.  That regulation provided:                               








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