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Respondent, on the other hand, presented no evidence
concerning the calculation or timing of the disputed penalties
and interest. The only evidence respondent offered was an
abbreviated statement that had been sent to petitioner that
reflected an amount of interest and penalties without any
specific underlying assessment data. This document is not a
statement of account and appears to be an unofficial document.
Although respondent is correct that interest and penalties would
normally accrue on petitioner’s $25,044 unpaid tax liability,
petitioner’s agreed payments were set at a total of $26,696,
indicating that the agreed payments did include penalties and/or
interest. Respondent presented no evidence showing that
penalties and interest accrued in excess of the amount petitioner
paid.
Petitioner’s credible testimony coupled with respondent’s
own records concerning the agreed payment arrangement thus
constitutes sufficient evidence to challenge respondent’s
determination. Respondent, however, has not presented any
evidence to refute petitioner’s testimony or to support the
amounts in dispute. Petitioner has thus met his burden of
showing that the disputed amounts are in error, and respondent
has not met his burden of showing that it was appropriate to
impose the penalties in dispute. Accordingly, we hold that it
was an abuse of discretion to proceed with collection activities.
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Last modified: May 25, 2011