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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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