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In advancing his first principal argument, petitioner makes
a related argument that respondent should not have returned to
petitioner petitioner’s September 29, 2004 offer-in-compromise.
In support of that related argument, petitioner relies on section
301.7122-1(d)(2), Proced. & Admin. Regs.28 In the first offer
27(...continued)
information submitted with such an offer is older than 12 months
or if there is any reason to believe the taxpayer’s situation may
have significantly changed. That part 5.8.5.2.2 of the IRM
provides:
(1) Collection Information Statements (CIS) submitted
with an offer in compromise should reflect infor-
mation no older than the prior six months. If
during the processing of the offer, the financial
information becomes older than 12 months, contact
should be made with the taxpayer to update the
information. However, in certain situations in-
formation may become outdated due to significant
processing delays caused by the Service, through
no fault of the taxpayer. In those cases, it may
be appropriate to rely on the outdated information
if there is no indication the taxpayer’s overall
situation has significantly changed. Judgment
should be exercised to determine whether, and to
what extent, updated information is necessary. If
there is any reason to believe the taxpayer’s
situation may have significantly changed, secure a
new CIS.
When petitioner submitted petitioner’s September 29, 2004 offer-
in-compromise in early October 2004, his 2003 return and his 2004
return were not due to have been filed. When the settlement
officer sent a letter to petitioner on May 24, 2005, with respect
to petitioner’s Form 12153, in which the settlement officer,
inter alia, requested updated financial information from peti-
tioner to be presented in a new Form 433-A, petitioner’s 2003
return and his 2004 return were due to have been filed.
28Sec. 301.7122-1(d)(2), Proced. & Admin. Regs., provides in
pertinent part:
(continued...)
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Last modified: March 27, 2008