Case: No Abuse of Discretion in Rejecting Offer in Compromise; Levy for Unpaid Excise Taxes Sustained (T.C. Memo) (§4971)

The appeals officer did not abuse his discretion in rejecting Petitioner’s offer in compromise and sustaining the proposed levy action for unpaid excise taxes, held the United States Tax Court, granting summary judgment for the IRS. Petitioner, a construction inspection company, failed to meet minimum funding standards for its defined employee pension plan over 18 years, resulting in excise tax liabilities under §4971(a). The IRS issued levy notices for the unpaid taxes, and Petitioner requested a collection due process hearing to propose an offer in compromise based on doubt as to collectibility with special circumstances, arguing public policy reasons for ...