Joseph F. and Caroline Enos - Page 16

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          petitioners asserted:  “All tax liability was paid on August 15,            
          1978 by means of levy against Metropolitan Metals, Inc. and an              
          Agreement to pay levy.  Claim for total tax liability was made in           
          Bankruptcy Case 79-318, Middle District of Pennsylvania in 1981.”           
               On March 8, 2000, the bankruptcy trustee sent respondent a             
          check for $149,312.40 for claims 134 and 175.  The check was                
          endorsed “For deposit only” by the U.S. Department of Justice and           
          paid on March 21, 2000.                                                     
               On March 17, 2000, respondent received payment of                      
          $149,312.40 for petitioners’ 1971 tax liability; $34,382.77 of              
          the payment was used to satisfy the remaining 1971 tax liability,           
          and the additional $114,929.63 was used to pay part of the                  
          accrued interest.                                                           
               On August 14, 2001, respondent issued petitioners the notice           
          of determination for their 1971 tax year.  The Appeals Officer              
          determined:                                                                 
               It is determined that the liability was the result of                  
               an examination of your personal income tax returns for                 
               the period.  You executed an agreement at the                          
               Examination level agreeing to the liability.  Under                    
               Section 6330 of the Internal Revenue Code the                          
               underlying liability may be challenged only if you did                 
               not receive a Statutory Notice of Deficiency or had no                 
               other opportunity to Appeal the liability.  As part of                 
               the examination process, you were explained your appeal                
               rights.  You chose to execute an agreement with the                    
               Examination Division.  Accordingly, the underlying                     
               liability may not be argued at the Collection Due                      
               Process Hearing.                                                       
               * * * The facts indicate that after the Service levied                 
               the receivable with MMI you continued to negotiate with                





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