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delinquent taxpayer of any right against the possessor of
property levied upon by the IRS.”
The facts in the instant case are distinguishable from those
in Barlow’s, Inc. and do not warrant a similar conclusion here.
In the instant case, MMI and respondent entered into the December
15, 1978, payment agreement for 200 weekly payments of $1,500 to
satisfy the August 15, 1978, notice of levy. MMI made only six
payments under this agreement. Shortly after entering into the
payment agreement with respondent, however, MMI went into
bankruptcy, in contrast to Barlow’s, Inc., where the third-party
debtor defaulted on the payment obligation and the Commissioner
failed to enforce the payment agreement, instead seeking payment
from the taxpayer.
Unlike the taxpayers in Barlow’s, Inc., who did not know
that the Commissioner and the third-party debtor had negotiated
an installment payment agreement for the satisfaction of the
taxpayer’s liability, petitioners were actively engaged in the
negotiations between MMI and respondent regarding the December
15, 1978, payment agreement.
After the August 15, 1978, notice of levy was issued to MMI,
petitioners participated in the negotiations between MMI and
respondent as to both the amount of the account receivable and
the payment agreement. Respondent’s records reflect that Mr.
Enos informed respondent that he was going to travel from
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