- 4 - respondent stating that petitioner excluded the $75,000 because petitioner was told by several people (including oral advice by an Internal Revenue Service (IRS) employee) that the $75,000 was not includable in petitioner’s 1998 gross income. Upon the failure of petitioner to file a timely petition, the deficiency and penalty were assessed. Responding to inquiries from petitioner and petitioner’s counsel, respondent abated the section 6662(a) penalty on June 4, 2001, but did not change the determination that the proceeds were includable in petitioner’s 1998 gross income.2 IV. Collection Proceeding On May 27, 2002, respondent issued to petitioner a Letter 1058, Final Notice of Intent to Levy and Notice of Your Right to a Hearing. On June 9, 2002, petitioner timely filed a Form 12153, Request for a Collection Due Process Hearing (hearing). At the November hearing,3 petitioner asserted that the $75,000 was excludable from gross income and requested an abatement of penalties and interest. Petitioner submitted an offer-in- compromise (OIC) for $8,000, but it was rejected because petitioner had the ability to fully pay the tax liability by an installment agreement. On December 5, 2002, petitioner filed a 2 Respondent assessed an addition to tax under sec. 6651(a)(3) on various dates in 2001. 3 Petitioner met with representatives of the IRS a number of times between November 2002 and October 2003.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011