- 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 toPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011