- 10 -
arising from the closing agreement. Respondent argues, however,
that the closing agreement precludes petitioner from asserting a
claim for relief under section 6015.
Generally, petitioner’s closing agreement would preclude her
from asserting any defense to a tax liability covered by the
agreement. See, e.g., sec. 7121(b);6 sec. 301.7121-1(c), Proced.
& Admin. Regs. A closing agreement entered into under section
7121 settles or “closes” the liability of an individual for any
tax covered by the agreement, and it is final and conclusive as
to both the taxpayer and the Commissioner. See, e.g., S&O
Liquidating Pship. v. Commissioner, 291 F.3d 454, 458 (7th Cir.
2002); Hopkins v. United States (In re Hopkins), 146 F.3d at 733;
6Under sec. 7121(a), the Commissioner is authorized to enter
into a written agreement with any person relating to the tax
liability of such person for any taxable period. Sec. 7121(b)
provides:
SEC. 7121(b). Finality.--If such agreement is
approved by the Secretary (within such time as may be
stated in such agreement, or later agreed to) such
agreement shall be final and conclusive, and, except
upon a showing of fraud or malfeasance, or
misrepresentation of a material fact--
(1) the case shall not be reopened as to the
matters agreed upon or the agreement modified by
any officer, employee, or agent of the United
States, and
(2) in any suit, action, or proceeding, such
agreement, or any determination, assessment,
collection, payment, abatement, refund, or credit
made in accordance therewith, shall not be
annulled, modified, set aside, or disregarded.
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