IRS Properly Binned Taxpayers’ Compromise Offer as Delay Tactic

The IRS was within its means to reject an offer in compromise from taxpayers it suspected were merely engaging in delaying tactics, the US Tax Court said.

The government didn’t abuse its discretion in rejecting the offer from attorney Edward William Allred and his wife, Rachel King Allred, over their tax liabilities, and so the government can levy them for the unpaid taxes, Judge Christian N. Weiler said.

The Allreds accrued $1.3 million in tax liabilities for all but one tax year from 2010 to 2019. In 2021, they submitted an offer in compromise for $466,000.

Part of the IRS ...