- 7 -
none of the checks should have been applied to Southwestern’s
unpaid employment tax liability. At trial, petitioner took the
position that only the $10,000 check was erroneously applied to
Southwestern’s unpaid employment tax liability. Specifically,
petitioner testified that in March 1996 an IRS employee “came
knocking on my door * * * saying that we hadn’t submitted the ‘94
tax return”. According to petitioner, he gave the revenue agent
the $10,000 check at that time, together with verbal instructions
to apply the $10,000 to petitioners’ 1994 tax liability. Like
the other two checks delivered to respondent in March 1996, the
$10,000 check did not bear any indication as to the tax
liabilities to which the amount was to be applied. Furthermore,
nothing in the record suggests that petitioners had previously
received any correspondence from respondent with respect to the
1994 tax liability. At the time the checks were delivered to
respondent, petitioners had not yet filed their 1994 return. The
1994 return was not filed by petitioners until June 1, 1999.
Furthermore, respondent did not assess petitioners’ 1994 tax
liability until February 7, 2000.
Disregarding petitioner’s self-serving, uncorroborated, and
implausible testimony on the point, see Niedringhaus v.
Commissioner, 99 T.C. 202, 212 (1992), we find that petitioners
have failed to present any credible evidence that the $10,000
payment made in March 1996 was intended to have been applied to
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011