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After an examination, respondent issued a notice of
deficiency, determining a $4,921 deficiency in petitioners’
Federal income tax for 1996. Petitioners did not petition the
Tax Court to redetermine the deficiency. On February 15, 1999,
respondent assessed the $4,921 additional tax.
1997 Tax Year
On their joint Form 1040 for 1997, petitioners reported
total tax of $1,046, withholding credits of $464, an estimated
tax penalty of $29, and an amount due of $611. Petitioners
remitted the $611 with their 1997 return; however, respondent
applied this payment against petitioners’ outstanding 1994
balance and assessed the amount reported on their 1997 return,
plus penalties and interest.
Collection Action
On March 6, 2000, respondent issued to petitioners a Letter
1058, Final Notice - Notice of Intent to Levy and Notice of Your
Right to a Hearing for the tax years 1994, 1996, and 1997.
Petitioners requested and received the referenced hearing. On
April 11, 2002, respondent issued to petitioners a Notice of
Determination Concerning Collection Action(s) Under Section 6320
and/or 6330, sustaining respondent’s proposed levy.
OPINION
If a taxpayer fails to pay any Federal income tax liability
within 10 days of notice and demand, the Secretary is authorized
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Last modified: May 25, 2011