John Thurman and Elaine Sheryl Horejs - Page 7




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               H.  Petitioners’ Petition                                              
               On July 11, 2001, petitioners filed with the Court a                   
          petition for lien or levy action seeking review of respondent’s             
          notice of determination.2  On August 2, 2001, petitioners filed             
          an amended petition which includes allegations that:  (1) The               
          Appeals officer failed to obtain verification from the Secretary            
          that the requirements of any applicable law or administrative               
          procedure were met as required under section 6330(c)(1); and                
          (2) petitioners never received a notice and demand for payment of           
          the disputed taxes.                                                         
               I.  Respondent’s Motion for Summary Judgment                           
               As indicated, respondent filed a Motion For Summary Judgment           
          And To Impose A Penalty Under I.R.C. Section 6673 asserting that            
          there is no dispute as to a material fact and that respondent is            
          entitled to judgment as a matter of law.  In particular,                    
          respondent contends that because petitioners received the notice            
          of deficiency dated March 27, 1996, they cannot challenge the               
          existence or amount of the income tax deficiencies and additions            
          to tax determined in the notice for 1992, in this proceeding.               
          Respondent further contends that the Appeals officer’s review of            
          Forms 4340 with regard to petitioners’ accounts for 1992, 1993,             
          and 1994 satisfied the verification requirement imposed under               


               2  At the time that the petition was filed, petitioners                
          resided in Burley, Idaho.                                                   





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