- 9 - H. Rejection of Petitioner’s Offer in Compromise By letter dated May 13, 1999, respondent rejected petitioner’s Offer in Compromise. The letter stated in relevant part as follows: This refers to your offer of $500.00, submitted to compromise your unpaid employment tax liabilities for the tax periods shown above. 4(...continued) under section 7436 for processing employment tax cases involving worker classification and sec. 530 of the Revenue Act of 1978. Notice 98-43 provides in relevant part as follows: AGREED SETTLEMENTS If the taxpayer wishes to settle the worker classification and � 530 issues on an agreed basis before issuance of a Notice of Determination, the taxpayer must formally waive the restrictions on assessment contained in �� 7436(d)(1) and 6213. This will generally be accomplished by execution of an agreed settlement that contains the following language: I understand that, by signing this agreement, I am waiving the restrictions on assessment provided in sections 7436(d) and 6213(a) of the Internal Revenue Code of 1986. The Service will not assess employment taxes attributable to worker classification or � 530 issues unless either the Service has issued a Notice of Determination to the taxpayer and the 90-day period for filing a Tax Court petition has expired or, alternatively, the taxpayer has waived the restrictions on assessment. If the Service erroneously makes an assessment of taxes attributable to worker classification and � 530 issues without first either issuing a Notice of Determination or obtaining a waiver of restrictions on assessment from the taxpayer, the taxpayer is entitled to an automatic abatement of the assessment. However, once any such procedural defects are corrected, the Service may reassess the employment taxes to the same extent as if the abated assessment had not occurred.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011