- 19 - This distinction among the various components of petitioner’s 1998 liabilities was consistently maintained by respondent in the Form 12257 memorializing the agreement. The document stated: “It has been determined to decrease the tax liability from $6,997 to $5,247.75. The $1,399 penalty will be abated in full.” In addition, rather than implying that a final payment amount had been calculated, the correspondence sent by respondent repeatedly indicated that further adjustments could be forthcoming. The May 29, 2002, letter accompanying the Form 12257 explained: “After Appeals closes the case it will be sent to the Service Center for the agreed changes to be processed. The Service center will then send an adjustment notice to the taxpayer with the exact amount due.” The Form 12257 itself noted that “The taxpayer will pay the balance due after receipt of the adjustment from the Service Center.” The July 9, 2002, letter confirming respondent’s approval of the settlement and sent after receipt of petitioner’s $4,244.75 check is even more explicit: “We will adjust your account and figure the interest. If you haven’t paid the full amount due, the IRS Center will send a bill for any additional amount you owe. If you are due a refund, the IRS Center will mail it to you.” Moreover, Ms. Hornstein’s testimony at trial reflects that she at no time considered interest, or settlement thereof, to bePage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011