Donna G. Faircloth, f.k.a. Donna G. Murray - Page 5

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          The trial record shows that petitioner regularly opened all mail            
          received, but she contends that she did not maintain their                  
          financial records nor prepare their tax returns.  Petitioner and            
          her spouse separated near the end of 1999.  Mr. Murray died on              
          October 7, 2001.  At the time of his death, no payments had been            
          made on the deficiencies.  Further, no Federal income tax returns           
          had been filed by petitioner and her spouse for the years 1997,             
          1998, 1999, 2000, and 2001.                                                 
               On or about October 22, 2001, collection notices were mailed           
          to petitioner with respect to the unpaid liabilities for 1995 and           
          1996.  Petitioner contacted the IRS to inform them that her                 
          husband was deceased and that she was unable to pay the                     
          liabilities.  She inquired what collection alternatives were                
          available to her and was advised that an offer-in-compromise,               
          installment agreement, or other collection alternative would not            
          be considered until petitioner brought her filing status current.           
          Consequently, she filed delinquent returns for taxable years                
          1997, 1998, 1999, 2000, and 2001 and a timely return for 2002.              
          The 1998, 1999, and 2001 returns reflected overpayments, which              
          were applied to the 1995 joint liability.                                   
               Petitioner initially filed her 2000 return as a married                
          individual filing separately.  There was an amount of tax due               
          reported on that return.  Respondent assessed additions to tax              
          under section 6651 and applied a portion of her 2001 overpayment            
          and all of her 2002 overpayment to the tax liability for 2000.              




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