- 15 -
until September 12, 1995. Petitioners deny that they agreed to
any extension of the period of limitations.
Petitioners' Form 4340 for 1991 records that their 1991
return was filed, and the tax reported as due thereon assessed,
on April 13, 1992. According to the Form 4340, petitioners'
withholding and excess FICA credits exceeded the assessed tax,
resulting in an overpayment that was initially transferred to
petitioners' 1987 account,12 but the transfer was subsequently
reversed and a $1,107.34 refund of the overpayment (plus
interest) was made to petitioners on July 19, 1993.
The Form 4340 thereafter contains the following entry, dated
July 17, 1995: "ASSESSMENT STATUTE EXPIR DATE EXTEND TO 09-12-
1995". The Form 4340 further records that a quick assessment of
$4,941, plus interest of $1,096.13, was assessed on August 28,
1995. According to the Form 4340, petitioners' 1995 and 1996
overpayments were applied against the quick assessment on April
15, 1996 and 1997, respectively.
Neither party was able to offer any explanation concerning
the circumstances giving rise to the quick assessment.
Respondent relies exclusively on the 1991 Form 4340 in contending
that petitioners had an unsatisfied liability for that year.
Respondent likewise relies exclusively upon the 1991 Form 4340 to
12 Less than $50 of the overpayment was also transferred to
petitioners' 1986 account.
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