Charles R. Godwin et al. - Page 25

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               b.  Section 6651(a)(1) Addition to Tax in the                          
               Deficiency Case                                                        
               For the reasons described supra (Issue 1.B.5.a.), with                 
          respect to the section 6651(a)(1) late filing addition to tax in            
          the section 6330 cases, petitioners are liable for the addition             
          to tax under section 6651(a)(1) in the deficiency case up to the            
          maximum statutory amount.                                                   
          6.  No Abuse of Discretion in Sustaining Levy                               
               Petitioners argue the Appeals officer abused his discretion            
          in sustaining respondent’s levy because:  (1) The Appeals officer           
          did not consider that the collection of tax would not be in                 
          jeopardy, given petitioners’ ownership of substantial assets and            
          income-earning potential with which to pay their tax liabilities;           
          (2) IRS agents repeatedly declined to inspect petitioners’ real             
          property damaged by natural disasters in 1997 and 1998; and (3)             
          respondent never replied to petitioners’ good-faith efforts to              
          negotiate reasonable collection alternatives, including                     
          petitioners’ offer in compromise.                                           
               Respondent filed a motion to strike portions of petitioners’           
          reply brief relating to the issue of abuse of discretion because            
          that issue was not raised in the petition.                                  
               Petitioners conceded the issue of abuse of discretion                  
          because the petitions filed with the Court do not assert (nor is            
          there any basis in the administrative record for the Court to               
          conclude) that the Appeals officer abused his discretion with               

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