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Regardless of respondent’s assertions about the unpaid
liabilities, petitioners paid amounts that in fact were due and
owing. The payments were applied by respondent. Petitioners
have not established that payments were misapplied. Making
payments of a legally due tax does not constitute detrimental
reliance. Hudock v. Commissioner, 65 T.C. 351, 364 (1975).
Since at least one element of collateral estoppel has not been
satisfied, respondent is not collaterally estopped from
proceeding in this case.
We sustain respondent’s determination to proceed with
collection of the income tax liabilities for the years in issue.
An appropriate decision will
be entered for respondent.
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Last modified: May 25, 2011