- 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