- 16 - 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 withPage: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
Last modified: May 25, 2011