Holding: IRS Did Not Abuse Its Discretion in Denying Debtor’s Offer-In-Compromise While Bankruptcy Case Was Pending

By Morgan D. King, Esq. Dublin, CA

Salazar v. Commissioner of Internal Revenue, T.C. Memo. 2008-38 (U.S.T.C., 2008)

As respondent's counsel now explains, an offer-in-compromise must include all of the outstanding liabilities of the taxpayer. Further, section 6325(a) provides that the Commissioner "shall issue a certificate of release of any lien imposed with respect to any internal revenue tax" not later than 30 days after the liability for the amount has been fully satisfied.

Thus respondent argues, if respondent were to accept an offer-in-compromise and . . .

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