- 9 - would destroy petitioners’ ability to pay their tax liabilities and how petitioners would be able to pay those liabilities in full in 18 months. On or about April 6, 2002, McKinnon faxed a response to Riley. McKinnon’s response stated, in pertinent part: If a tax lien is filed, taxpayer’s lenders will call the notes on which taxpayer’s assets are pledged. This would put the taxpayer out of business with no resources to pay the IRS. Taxpayer believes that he will be able to sell the encumbered assets within the next 18 months and clear enough to pay the IRS in full. On July 17, 2002, Riley issued a Final Notice-Notice of Intent to Levy and Notice of Your Right To a Hearing (final notice) to each petitioner for their unpaid income tax liabilities for 1999 and 2000. Clawson’s final notice included the unpaid amount of the trust fund penalty that had been imposed against him for 1991. Riley sent a copy of the final notice to McKinnon along with a letter that provided the following explanation: We are taking this action because the taxpayer has not made Estimated Tax payments for 2000, 2001, nor 2002. He has only paid seven of ten promised payments toward the liability as you had suggested in September of 2001. According to the 2000 Income Tax return, he has increased his liability substantially via a capital gain that was not used to pay his tax obligation. On July 31, 2002, the IRS Office of Appeals denied petitioners’ Collection Appeal Request of September 19, 2001.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011