Tax News

CCH (cch.taxgroup.com) reports:

  The government's letter to an individual did not constitute an acceptance of the individual's settlement offer and did not create a valid and binding settlement of the parties' dispute. The letter did not mirror the terms of the offer because it made no reference to the interest that would accrue if he failed to pay the settlement amount within 120 days of the government's acceptance.

  Instead, it provided that the offer would be accepted on condition that payment is made within 120 days, with the understanding that the settlement did not constitute a compromise of the individual's income tax liability. Since the letter altered the terms of the individual's offer, it was construed as a counteroffer by the government.

  Related decision at 2006-2 USTC ¶50,555.

E.A. Brinskele, FedCl, 2008-2 USTC ¶50,493

Other References:

 
Code Sec. 7122

  CCH Reference - 2008FED ¶41,130.175

  Tax Research Consultant

  CCH Reference - TRC IRS: 42,116