Opinion ID: 201691
Heading Depth: 2
Heading Rank: 6

Heading: Comparison of Amount of Offer in Compromise and Amount of Tax Liability

Text: 49 Olsen argues that the district court's comparison of the amount he offered to compromise the tax debt ($5,000) with the amount of the tax liability ($105,000) was improper. See Olsen, 326 F.Supp.2d at 189. In a case where there is doubt as to collectibility, like this one, he contends that such a comparison is irrelevant. But the comparison is not irrelevant where, as here, the taxpayer was not forthcoming as to the details of his financial position and the IRS remained uncertain as to what his financial ability and assets were. The district court stated that, [d]espite the paltry size of the plaintiff's offer in comparison to his liability ... the appeals officer took several steps to assist the plaintiff in perfecting his offer for processing. Id. The court went on to hold that the appeals officer's determination that the offer in compromise could not be accepted was not an abuse of discretion where Olsen had failed to submit requested financial information necessary to consider the offer. See id. We see no error.