- 18 - means such as administrative and judicial collection remedies. Rev. Proc. 2003-71, sec. 4.02(2), 2003-2 C.B. 517, 517. The offer-in-compromise must include all unpaid tax liabilities and periods for which the taxpayer is liable. 1 Administration, IRM (CCH), pt. 5.8.1.7, at 16,256. If an offer-in-compromise is submitted where a taxpayer has also filed a bankruptcy petition, the Commissioner cautions against acceptance of the offer-in-compromise in the window between a taxpayer’s discharge in bankruptcy and the time the final distribution is made because “it is uncertain whether the Service would still have a valid claim in bankruptcy if an offer is accepted.” 1 Administration, IRM (CCH), pt. 5.8.10.2.3(2), at 16,368. Thus, the Internal Revenue Manual guidelines advise that “the amount acceptable for an offer should include the amount we reasonably expect to recover from the bankruptcy in addition to what can be collected from the taxpayer on non-discharged liabilities or from property outside the bankruptcy.” Id. It is clear from the administrative record that Mr. Conte was concerned that accepting petitioners’ $9,024.25 offer-in- compromise would risk respondent’s expected distribution from the bankruptcy. Mr. Conte had extended contact with respondent’s bankruptcy specialists. He also performed his own research, including reviewing the IRM guidelines. Mr. Conte sought to determine the likely amount respondent would receive from thePage: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: March 27, 2008