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proposed to increase the Freijes' adjusted gross income for 1999.
Without more, we see no merit in petitioner's challenge to the
underlying liability for 1998.
The Appeals officer's determination to proceed with the levy
has not taken into account, however, the $4,094 in withholding
credits of Mrs. Freije to which respondent concedes the Freijes
are entitled, or the $6,500 in 1999 remittances that were
improperly applied to the Freijes' 1997 account. Given these
infirmities, the determination that the levy for 1998 could
proceed without modification was an abuse of discretion.
1999
The unpaid tax for 1999 that is sought to be collected by
the levy at issue includes an assessment of tax of $15,265 (as
well as an estimated tax addition to tax and interest) that
respondent made on May 29, 2000. For the reasons outlined below,
we conclude that a portion of this assessment is invalid.
The Freijes reported a tax due of $12,507 on the 1999
return, timely filed on April 15, 2000. However, on May 29,
2000, pursuant to what respondent concedes was a so-called math
error notice under section 6213(b)(1), respondent adjusted
various items reported on the 1999 return, resulting in an
increase in the reported tax to $15,265, which was assessed on
the same date.
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