- 4 -
agreement under the provisions of section 7121.3 Holland v.
Commissioner, 70 T.C. 1046, 1048-1049 (1978), affd. 622 F.2d 95
(4th Cir. 1980); Hudock v. Commissioner, 65 T.C. 351, 362 (1975).
The statutory procedure is ordinarily the exclusive method by
which the Commissioner may be finally and conclusively bound.
Botany Worsted Mills v. United States, 278 U.S. 282, 288 (1929);
Estate of Meyer v. Commissioner, 58 T.C. 69, 70-71 (1972). "The
very fact that Congress has provided a way in which the Internal
Revenue Department may bind itself, precludes the possibility of
its being bound by some other procedure." Knapp-Monarch Co. v.
Commissioner, 139 F.2d 863, 864 (8th Cir. 1944), affg. 1 T.C. 59
(1942).
In the instant case, petitioners did not enter into any
agreement with respondent with respect to their 1993 taxable
year, let alone a closing agreement pursuant to the provisions of
section 7121 and the regulations thereunder. Further,
respondent's acceptance and cashing of the check tendered by
petitioner did not constitute an accord and satisfaction of
petitioners' tax liability for 1993. Johnston v. Commissioner,
19 B.T.A. 630 (1930); Whitaker v. Commissioner, T.C. Memo. 1994-
109; Kehew v. Commissioner, T.C. Memo. 1983-354.
3 Sec. 7121(b) provides an exception to this rule upon a
showing of fraud, or malfeasance or misrepresentation of a
material fact.
Page: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011