Joseph F. and Caroline Enos - Page 4

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          as facts in the instant case.  At the time petitioners filed                
          their petition, they resided in Taunton, Massachusetts.                     
               During the 1970s, petitioners operated Joseph Enos & Sons              
          (Enos & Sons) and were engaged in the scrap metal business in               
          Massachusetts.  Petitioners routinely sold scrap metals to                  
          Metropolitan Metals, Inc. (MMI), of Harrisburg, Pennsylvania,               
          from whom petitioners had a significant account receivable for              
          scrap metal purchased by MMI (account receivable).                          
               Petitioners made estimated tax payments of $1,753.51 for               
          their 1971 tax year.  Respondent conducted an audit of                      
          petitioners’ 1971 tax year.  On November 14, 1977, respondent               
          assessed $164,886.76 in liabilities for 1971, comprising an                 
          income tax liability of $88,156.02, an addition to tax for fraud            
          of $44,078.01 relating to certain cash transactions, and interest           
          of $32,652.73.  Petitioners did not dispute the liabilities                 
          assessed against them for 1971.                                             
               On August 15, 1978, in an attempt to collect payments on               
          petitioners’ 1970, 1971, and 1972 tax liabilities, respondent               
          issued MMI a notice of levy (August 15, 1978, notice of levy),              
          seizing the account receivable.  When respondent issued MMI the             
          August 15, 1978, notice of levy, MMI was experiencing financial             
          problems.  The August 15, 1978, notice of levy informed MMI that            
          it owed respondent $310,333.58, of which $159,476.08 was for                
          petitioners’ 1971 tax year.  The August 15, 1978, notice of levy            






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