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individual and corporate amended returns for 1997 and 1998 and
filing of an appropriate revocation of BP Concessions’ S
corporation election in exchange for withdrawal of the notice of
Federal tax lien. In May 2001, petitioner gave Ms. Jaffe amended
individual income tax returns but stated they were never filed.
On May 22, 2001, petitioner and Mr. Foster executed an “Agreement
to Change BP Concessions to a C Corporation”. The agreement
stated:
The undersigned hereby agree that at the year-end
meeting in December of 1996, Phillip Aaron was charged
by the Corporation with converting BP CONCESSIONS, INC.
from a Sub-Chapter S Corporation to a C Corporation for
the specific purpose, and in anticipation of, BP
CONCESSIONS, INC., receiving income and loaning part of
that income to Bernie Foster and Phillip Aaron during
the year of 1997. Phillip Aaron was responsible for
changing the Corporation from a Sub-Chapter S to a C
Corporation. Phillip Aaron developed cancer and
underwent chemotherapy during 1997 and, as a result,
the C Corporation election was not made. It is still
the desire of BP CONCESSIONS, INC., Phillip Aaron, and
Bernie Foster that BP CONCESSIONS, INC., be changed
from a Sub-Chapter S Corporation to a C Corporation and
that the disbursement of proceeds for 1997 be
classified as a loan as they were intended to be at the
time of disbursement.
Appeals Settlement Officer Vander Linden prepared a detailed
Appeals case memo evaluating petitioners’ appeal and recommending
that it be denied. On July 6, 2001, the IRS issued a Notice of
Determination Concerning Collection Action(s) Under Sections 6320
and 6330.
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