In Uncategorized on 10/07/2016 at 15:43

The words of the late great Janis Joplin, heretofore in these blogposts furnishing advice regarding returns and petitions, now spirals on to OICs, as we look at Leslie J. Prins & Denise D. Westing-Prins, Docket No. 25969-15SL, filed 10/7/16, a designated hitter from The Judge With a Heart, STJ Armen.

You know IRS need not negotiate an OIC. If the taxpayer comes in too low, Appeals can bounce the collection alternative and send the taxpayer to 400 Second Street, NW.

But Les & Den caught a break. The SO told them to up the ante. Les & Den said they would, but didn’t.

Just to make sure they (and we) get the point: “It is not an abuse of discretion for a Settlement Officer to sustain a proposed collection action and not consider collection alternatives when the taxpayer has proposed none. Kendricks v. Commissioner, 124 T.C. 69, 79 (2005); O’Neil v. Commissioner, T.C. Memo. 2009-183 (taxpayer discussed an offer in compromise with settlement officer on multiple occasions but failed to submit one in writing); see also Treas. Reg. § 301.7122-1(d)(1) (offer must be made in writing and must contain all the information requested by the Internal Revenue Service). Here, petitioners initially submitted an OIC but it was found wanting, petitioners were told why and were provided an opportunity to submit an amended Form 656 in order to cure the problem, but they failed to do so. Under these circumstances it was not be an abuse of discretion to deny petitioners a collection alternative.” Order, at p. 2.

When you’re thrown a rope, make amends.

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