Astrida Terauds - Page 18

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          on the return filed by petitioner, nor were any reasons stated by           
          respondent at trial to explain the action taken in disallowing              
          the $2,899.89 as a payment of the 1987 tax and subsequently                 
          applying this amount to a 1989 tax liability of petitioner.                 
               Section 6151(a) provides generally that, when a return of              
          tax is required, the person required to make such return shall,             
          without assessment or notice and demand from the Secretary, pay             
          such tax to the internal revenue officer with whom the return is            
          filed and shall pay such tax at the time and place fixed for                
          filing the return.  Section 6342(a) provides generally that any             
          money realized pursuant to a levy or sale of seized property                
          shall be applied first against the expenses of the levy and sale,           
          second against any taxes owing on the property seized and sold,             
          third against the liability of the delinquent taxpayer in respect           
          of which the levy was made or the sale conducted.  Section                  
          6342(b) provides that any surplus shall, upon application and               
          satisfactory proof thereof, be credited or refunded by the                  
          Secretary to the taxpayer or persons legally entitled thereto.              
          Section 301.6342-1(b), Proced. & Admin. Regs., provides that the            
          delinquent taxpayer is the person entitled to the surplus                   
          proceeds unless another person establishes a superior claim                 
               Thus, when petitioner filed an income tax return for 1987              
          that showed a tax due and owing of $4,379, she was required by              

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