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A closing agreement is the only statutorily authorized method for
entering into an agreement relating to the taxpayer’s liability
for any taxable period that binds both the Internal Revenue
Service and the taxpayer. Sec. 7121; sec. 301.7121-1(d), Proced.
& Admin. Regs; see Botany Worsted Mills v. United States, 278
U.S. 282, 288 (1929); Estate of Meyer v. Commissioner, 58 T.C.
69, 70-71 (1972). A no change letter is not a closing agreement
under section 7121; thus, respondent is not bound by any
representations in the no change letter. See Miller v.
Commissioner, T.C. Memo. 2001-55.
Constitutional Argument
Petitioner’s due process rights were not violated because
respondent did not produce a witness from United Ready Mixed at
trial. The Sixth Amendment to the Constitution, and
specifically, the accused’s right to be confronted by witnesses,
applies only to criminal proceedings, not to civil proceedings
for the collection of tax or remedial penalties. U.S. Const.
amend. VI; Olshausen v. Commissioner, 273 F.2d 23, 27 (9th Cir.
1959), affg. T.C. Memo. 1958-85. More generally, in this civil
tax litigation, respondent is not required to gather witnesses on
petitioner’s behalf; petitioner is free to subpoena his own
witnesses. Rule 147. Petitioner’s due process rights were not
violated in the cases at hand.
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