S.1219 Offer in Compromise proposed legislation
Taxpayer Protection and Assistance Act of 2007 (Introduced in Senate)
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SEC. 9. CLARIFICATION OF STANDARDS FOR EVALUATION OF COMPROMISE OFFERS.
Section 7122(d)(1) is amended--
(1) by inserting `based on doubt as to liability, doubt as to collectibility, or equitable consideration' after `dispute', and
(2) by inserting at the end the following new paragraph:
`(4) EQUITABLE CONSIDERATION- In prescribing guidelines under paragraph (1), the Secretary shall compromise a liability to promote effective tax administration when it is inequitable to collect any unpaid tax (or any portion thereof, including penalties and interest) based on all of the facts and circumstances, including--
`(A) whether the taxpayer acted reasonably, responsibly, and in good faith under the circumstances, such as, by taking reasonable actions to avoid or mitigate the tax liability or delayed resolution of such liability,
`(B) whether the taxpayer is a victim of a bad act by a third party or any other unexpected event that significantly contributed to the tax liability or delayed resolution of such liability,
`(C) whether the taxpayer has a recent history of compliance with tax filing and payment obligations (before and after the situation that led to the current tax liability) or has a reasonable explanation for previous noncompliance,
`(D) whether any Internal Revenue Service processing errors, systemic or employee-related, led to or significantly contributed to the tax liability,
`(E) whether the Internal Revenue Service action or inaction has unreasonably delayed resolution of the tax liability, and
`(F) any other fact or circumstance that would lead a reasonable person to conclude that a compromise would be fair, equitable, and in the best interest of tax administration.'.