- 2 -
FINDINGS OF FACT
On April 1, 1999, John and Donna Ringgold (petitioners)
executed and sent respondent Form 4549-CG, Income Tax Examination
Changes, in which petitioners agreed to the immediate assessment
and collection of additional tax liabilities for 1995 and 1997.
The form set forth deficiencies, additions to tax, penalties, and
interest through April 21, 1999, totaling $20,100.33. In an
accompanying letter, petitioners offered to settle their entire
tax liability for $12,803.00 (i.e., the amount of the balance due
excluding additions to tax, penalties, and interest) and
requested 60 days from April 15, 1999, to secure the necessary
funds.
Several weeks later, Mr. Ringgold asked respondent’s auditor
whether the terms of his letter had been accepted. The auditor
responded affirmatively, but was under the mistaken impression
that petitioners’ letter was merely a request for a short-term
extension of time to pay the liability. On April 6, 1999, the
auditor prepared and sent to petitioners Form 433-D, Installment
Agreement, for $20,100.33 (i.e., the entire amount of the
liability per the audit report), put a hold on the collection
activity for 120 days, and closed the file as “agreed”. On June
7, 1999, respondent made an additional assessment, and on
September 6, 2000, sent petitioners a Notice of Federal Tax Lien
Page: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011