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petitions have been consolidated for trial, briefing, and
opinion.
OPINION
I. Introduction
While this matter has developed in a manner that has made it
more complicated than necessary, in the end it is a collection
review case in which petitioners principally sought to resolve
their outstanding income and employment tax liabilities through
an offer-in-compromise. Petitioners offered to settle all of
their outstanding liabilities, including the income tax
liabilities and the employment tax liabilities, for $9,024.25.
Respondent rejected the offer-in-compromise because he was likely
to receive more from the petitioners’ pending bankruptcy.
Petitioners want the Court to determine that respondent’s
rejection was an abuse of discretion and that respondent be
compelled to accept the offer-in-compromise with respect to both
the income taxes and the employment taxes. We find that
respondent did not abuse his discretion.
Section 6330 provides that no levy may be made on any
property or right to property of a person unless the Secretary
first notifies him in writing of the right to a hearing before
the Appeals Office. At the hearing, the taxpayer may raise any
relevant issues relating to the unpaid tax or the proposed levy,
including appropriate spousal defenses, challenges to the
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Last modified: March 27, 2008