William F. Urbano and Flota L. Urbano - Page 15

                                       - 15 -                                         
          petitioners and respondent alike in connection with such a                  
          subsequent lawsuit in a Federal District Court, and it would be             
          an inefficient use of the judiciary’s limited resources to                  
          require that petitioners’ liability for interest be tried in two            
          courts instead of one.                                                      
               Where as here the existence and amount of an underlying tax            
          liability is properly at issue in an appeal brought under section           
          6330(d)(1), we review the taxpayer’s liability de novo.  Sego v.            
          Commissioner, 114 T.C. 604, 610 (2000).  Petitioners do not in              
          their papers include any calculation of disputed interest but               
          simply set forth two reasons in support of their claim that their           
          interest liability is now zero.  Petitioners argue first that the           
          Form 4549-CG conclusively determined their 1993 liability for               
          Federal income tax, inclusive of penalty and interest, and that             
          respondent is now barred from making any additional assessment              
          for that year.  Petitioners argue second that the assessment for            
          the disputed interest is invalid in that they were not informed             
          about that interest before the assessment was made.                         
               We disagree with both of petitioners’ arguments.  As to the            
          first argument, it is firmly established that section 7121 sets             
          forth the exclusive means by which an agreement between the                 
          Commissioner and a taxpayer concerning the latter’s tax liability           
          may be accorded finality.  E.g., Hudock v. Commissioner, 65 T.C.            
          351, 362 (1975).  Section 7121 authorizes the Commissioner to               

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  Next

Last modified: May 25, 2011