James O. Jondahl - Page 10

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          establish petitioner’s liability for the “tax years 1990, 1991,             
          1992 and 1993”.  We do not believe petitioner intended to include           
          the 1994 tax year in attempting to resolve the matter, nor do we            
          find that respondent understood petitioner’s offer as attempting            
          to include the 1994 tax year.  Thus, we find the inadvertent                
          inclusion of 1994 did little to lessen the import of petitioner’s           
          offer to establish his tax liability (determined without regard             
          to interest) for tax years 1990, 1991, 1992, and 1993 by agreeing           
          to pay $12,000 in addition to the $42,873.24 he had already paid            
          in restitution.                                                             
               Accordingly, we find that the offer conveyed by petitioner             
          meets the requirements of a qualified offer under section 7430(g)           
          and section 301.7430-7(c)(3), Proced. & Admin. Regs.  Petitioner            
          offered to establish his liability, including fraud penalties and           
          without regard to interest, for the 1990, 1991, 1992, and 1993              
          tax years as $54,873.24.  Because this amount is greater than the           
          amount of petitioner’s liability as determined by this Court in             
          Jondahl v. Commissioner, T.C. Memo. 2005-55 and computed pursuant           
          to Rule 155, petitioner is entitled to his litigation costs of              
          $17,217.50 incurred after communicating his qualified offer on              
          April 27, 2004.                                                             


                                                  An appropriate order will           
                                             be issued.                               






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