Barry R. Downing and Mary A. Downing - Page 1

                                   118 T.C. No. 2                                     

                               UNITED STATES TAX COURT                                

                BARRY R. DOWNING AND MARY A. DOWNING, Petitioners v.                  
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 2217-00L.                  Filed January 7, 2002.           

                    Petitioners (Ps) filed a return for 1995 in which                 
               they correctly reported their tax liability but did not                
               pay the tax owed.  Ps included $5,000 and an offer in                  
               compromise in which they offered to pay that amount in                 
               full settlement of the $32,561 tax they owed.                          
                    Respondent (R) misplaced Ps’ offer in compromise                  
               for about 1 year.  R did not accept that offer in                      
               compromise or four similar offers in compromise made by                
               Ps because R believed R could collect a substantially                  
               larger amount of Ps’ 1995 tax liability.                               
                    R issued to Ps a notice of intent to levy.  Ps                    
               requested and received a hearing on the proposed                       
               collection action under sec. 6330, I.R.C.  Ps contended                
               that they had reasonable cause for their failure to pay                
               tax and requested that interest be abated because R had                
               misplaced their offer in compromise for 1 year.  R                     
               issued a notice of determination to Ps stating that                    
               interest would not be abated and that collection would                 

Page:   1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011