David Jackson and Betty S. Jackson - Page 15

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          this period was caused by respondent’s failure to provide                   
          petitioners with an escrow demand letter.9  See Douponce v.                 
          Commissioner, T.C. Memo. 1999-398 (holding that respondent’s                
          failure to provide the taxpayer with a correct payoff amount was            
          a ministerial act that warranted the abatement of interest).                
               On July 27, 2003, petitioners submitted to respondent a Form           
          12153 stating that the lien prohibited them from refinancing                
          their home.  On August 28, 2003, petitioners requested another              
          payoff amount, but they did not receive a response from                     
          respondent.  Almost 1 month later, petitioners again requested a            
          payoff amount, which they received on September 23, 2003, in the            
          form of computer printouts.  After appealing to an Appeals                  
          officer, petitioners finally received an escrow demand letter on            
          October 10, 2003.  Once petitioners received the escrow demand              
          letter, World Savings promptly approved their October 16, 2003              
          loan application and assigned a closing date of October 28, 2003.           
          On October 31, 2003, petitioners paid in full their outstanding             
          tax liabilities including interest and additions to tax.                    

               9  We note that the Internal Revenue Manual, section                   
          25.17.4.4.2 (Sept. 1, 2004), provides a procedure for preparing a           
          Form 10492, Notice of Federal Taxes Due, in the case of an escrow           
          payoff request during a Ch. 13 proceeding.  The Form 10492                  
          contains the identity of the taxpayer, the amounts due for taxes            
          secured by a lien on the property, and calculations for interest            
          and penalties.  Form 10492 enables the escrow company to pay                
          respondent directly from the escrow funds in a sale or                      
          refinancing of real property.  A similar procedure appears                  
          equally applicable to a refinancing of real property in a non-              
          bankruptcy case.                                                            





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