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care to set aside otherwise available liquid funds to pay
estimated tax during 1997 and 1998 or to pay their 1997 Federal
income tax liability on time in 1998. They disabled themselves
from so doing by using the proceeds of the $1 million fee to
invest in timberland, pour funds into building their new house,
and substantially increase their charitable contributions, rather
than set aside some portion of the fee in readily accessible
Treasury bills, certificates of deposit, or other money-market
obligations.
After making some preliminary observations about judicial
review, burden of proof, and respondent’s extensions of time to
file and pay, we hold petitioners are liable for the section
6654(a) and 6651(a)(2) additions to tax for late payments and the
section 6651(a)(1) addition to tax for late filing. We also
sustain respondent’s levy, rejecting petitioners’ claim that the
Appeals officer abused his discretion.
The amounts of some of the additions to tax set forth in
respondent’s trial memorandum appear facially incorrect and do
not correspond to the amounts set forth in the October 24, 1999,
notice of intent to levy. Petitioners did not object to the
absence from the record of Form 4340, Certificate of Assessment,
or request inclusion of that form in the record to verify the
validity of the assessments. See secs. 6330(c)(1), 6203; sec.
301.6203-1, Proced. & Admin. Regs. Respondent conceded on brief
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