Michael Stephen Frate - Page 8

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          wage levy deductions were embezzled or, if they were, who                   
          embezzled them.                                                             
               We note that Mr. Jones stated in his letter that BSA                   
          embezzled PWJ’s payroll taxes.  On the other hand, Mr. Jones                
          claimed that separate payments were made by PWJ to BSA for                  
          petitioner’s taxes.  In addition, the purported payments were               
          made by Wen-Don Corporation, not by PWJ.  The settlement officer            
          had suggested to petitioner that he contact his employer and                
          obtain copies of the checks (front and back) evidencing the wage            
          levy deductions so that they may be traced.  Petitioner did not             
          seem too interested in doing so at that time.  Only a limited               
          number (3) of separate checks for wage levy payments were put in            
          evidence at trial.  These checks from Wen-Don Corporation, signed           
          by Mr. Jones, the former president of PWJ, do not match the so-             
          called PWJ records of wage levy deductions.                                 
               At trial, petitioner suggested that respondent should seek             
          recovery from BSA or PWJ for the wage levy deductions not paid              
          over to the IRS and that petitioner should be credited for such             
          deductions.                                                                 
               Clearly, respondent can take action to enforce the lien                
          under section 7403 where there is a refusal to pay any tax.  We             
          have found the following provision significant.  Section 6332               
          refers to the surrender of property subject to levy.  It provides           
          that any amount (other than costs) recovered under this paragraph           






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