123 T.C. No. 17
UNITED STATES TAX COURT
JOSEPH F. AND CAROLINE ENOS, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 11630-01L. Filed September 27, 2004.
R assessed income tax, interest, and civil fraud
liabilities for Ps’ 1971 tax year. Ps were involved in
the scrap metal business and had a substantial account
receivable from Ps’ customer M. R issued to M a notice
of levy on the account receivable. R and M entered
into a payment agreement, whereby M would make 200
weekly payments of $1,500 to R. Ps were aware of and
participated in the negotiation of the payment
agreement between M and R. Ps continued to do business
with M and received large payments from M before M was
placed in bankruptcy. R filed an original and several
amended proofs of claim in M’s bankruptcy case,
relating to the notice of levy. The bankruptcy court
held that R did not have to marshal Ps’ assets before
seeking M’s assets in bankruptcy court. R issued Ps a
notice of determination to proceed with collection of
Ps’ 1971 liabilities for accrued interest on Ps’ 1971
tax liabilities pursuant to sec. 6330, I.R.C. R
determined that collection should proceed because R
never had “dominion and control” over the account
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