- 8 - occasions. Following one such contact, Mr. Conte received an e- mail informing him that “Mr. Salazar owes: IMF $13,977.92 and BMF $62,786.01 for a total of $76,763.93. The amount that will come to IRS from the trustee’s office * * * [$25,000 less trustee expenses] will not full-pay the account (less than 1/3 of balance due). Collection will not be withheld.”2 According to his case record, Mr. Conte was concerned that accepting an offer-in-compromise while awaiting a final distribution from the bankruptcy might jeopardize respondent’s claims to that distribution. Mr. Conte performed research, including reviewing the Internal Revenue Manual (IRM), to assist with his consideration of petitioners’ offer-in-compromise. Mr. Conte noted the IRM’s caution on accepting an offer-in-compromise while awaiting a distribution of assets from a bankruptcy. Mr. Conte also sought and received legal advice on the effect an offer-in-compromise would have on the pending bankruptcy distribution. Counsel from within the Internal Revenue Service (IRS) advised Mr. Conte that acceptance of the offer-in- compromise risked respondent’s claim to the distribution and that the offer-in-compromise should be increased by the amount respondent expected to receive from the bankruptcy. 2“IMF” refers to respondent’s Individual Master File for petitioners’ income tax liabilities. “BMF” refers to respondent’s Business Master File for Mr. Salazar’s employment tax liabilities.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: March 27, 2008