Craig F. and Lynn M. Rehberg - Page 5

                                        - 4 -                                         
          return, petitioners stated:                                                 
               Taxpayer [sic] sold their home in 1994 and reported the                
               sale on Form 2119 attached to the original 1994 return.                
               The Taxpayers have not replaced their home within the                  
               time limit proscribed [sic] by law and are amending                    
               their 1994 & 1999 returns to report the gain on the                    
               sale of the home on 1994 instead of 1999.[7]                           
          Petitioners did not enclose payment with their amended return of            
          any part of the liability reported therein.8                                
               On April 23, 2001, respondent assessed against petitioners             
          income tax in the amount of $14,360, as well as interest as                 
          provided by law, for the taxable year 1994.9  (We shall refer to            
          the unpaid balance of the assessment for the taxable year 1994,             
          as well as any accrued interest as provided by law, as                      
          petitioners’ unpaid liability.  See Washington v. Commissioner,             
          120 T.C. 114, 116 (2003).)  On or about that same time,                     
          respondent sent petitioners a notice of balance due informing               
          them that they had a liability for 1994 and requesting that they            
          pay it.  Petitioners did not make any payment.                              
               On July 3, 2002, respondent sent petitioners a Final Notice            

               7  There is nothing in the record to explain petitioners’              
          reference to their 1999 return.                                             
               8  Generally, when a return of tax is made and an amount of            
          tax is shown on the return, the person making the return shall,             
          without assessment or notice and demand, pay such tax at the time           
          and place the return is filed.  Sec. 6151(a).                               
               9  We note that respondent based the assessment on                     
          petitioners’ amended return.  Sec. 6201(a)(1).  Respondent did              
          not, therefore, need to send petitioners a notice of deficiency             
          for the taxable year 1994.                                                  

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011