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D. Whether Payment Has Been Made
Finally, petitioner alleges that the 1990 tax assessment was
extinguished when respondent seized and sold the property in
1995, notwithstanding that respondent subsequently returned the
property to petitioner. Petitioner also argues that section
6343(b) prohibited respondent from repurchasing the property from
ACI and consequently prohibited respondent from reversing the
credit of the purchase price previously applied to petitioner’s
1990 tax liability. As explained below, we reject both
arguments.
1. Extinguishment of Petitioner’s Assessment
Petitioner relies on several cases, including Clark v.
United States, 63 F.3d 83 (1st Cir. 1995), for the proposition
that his 1990 tax assessment was extinguished by the Government’s
initial seizure of the property in 1995, even though the property
was subsequently returned to him. The District Court in McIntosh
v. United States, 82 AFTR 2d 98-6501, at 98-6510, has previously
considered and rejected petitioner’s argument in this regard.
The District Court concluded:
Plaintiff’s position that the IRS cannot now levy
on his real property based on the same Notice of
Deficiency which preceded the initial seizure of that
property is not well-taken. Plaintiff relies on Clark
v. U.S., 63 F.3d 83 (1st Cir. 1985), for this
7(...continued)
required to provide a lender with notice under sec. 6303(a)
before bringing a civil suit to collect a payroll borrower’s
unpaid withholding tax under sec. 3505).
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