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a carry back from later years to further correct the
liability to a lower amount. Refunds were taken from
later years to make additional payments.
Since the return was filed later and insufficient
withholding was set up, the account includes the fail-
ure to pay penalty, the failure to file penalty, an
estimated tax penalty and interest. As amendments and
payments were applied, corrections were made to the
account.
In review of a current transcript, Appeals finds the
Service levied and took $2,236.512 on 05-17-2004, after
the taxpayer had timely requested an appeal. This
amount shouldn’t have been levied. The late posting of
the request for appeals allowed the Service to enforce
a levy action without a suspension during the CDP
suspension period. The CDP unit in Covington, KY was
advised to return the levied funds and it was refunded
during the hearing period.
DISCUSSION AND ANALYSIS
APPLICABLE LAW AND ADMINISTRATIVE PROCEDURES
* * * * * * *
In review of the file and transcripts, it appears that
all manual and legal procedures have been properly
followed. This Appeals Officer has not dealt with this
taxpayer in the past regarding this liability. I did
have involvement in the taxpayer’s corporation in the
past, but not regarding the current type of individual
taxes or years. The taxpayer signed a waiver of my
involvement.
I found one error on May 17, 2004, when the Service
took levy funds during the CDP hearing period of col-
lection suspension. The CDP unit was advised to return
the funds. The cause for the premature levy action was
the late input of the suspension code on the account.
The request for a hearing was timely received on March
12, 2004 but the suspension code TC 520 cc 77 was not
input until cycle 200429, approximately August. Ap-
peals believes the CDP unit didn’t recognize the CDP
request until June of 2004 because the taxpayer didn’t
use form 12253. When they allowed the CDP hearing, the
CDP unit should ensure premature levy was returned to
the taxpayer.
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