- 7 -
approximately $80,000 and monthly expenses totaling approximately
$3,700.
Petitioner’s request for relief was initially denied by the
IRS Examination Division on April 29, 2004. Petitioner responded
with a statement of disagreement requesting that the IRS
reconsider the denial. Her reasons for the continued dispute
paralleled those alluded to in her Forms 8857 and 12510, to wit:
Contrary to your conclusion, when my husband and I
signed the tax returns for 1997, we had every reason to
believe that we would be able to pay those taxes.
First of all, my husband’s attorney had assured us that
the IRS was always the first creditor in bankruptcy
proceedings. Therefore, we had no doubt that the taxes
would be paid through the court. As stated in my
original request for relief, had we even suspected that
this would not be the case, the amount for the taxes
could have - and would have - been withdrawn from the
pension plan monies before the bankruptcy was ever
filed. Also, had that suspicion existed, we still
would have had the security of knowing that the taxes
could be paid with pension plan funds after the
bankruptcy was discharged. Never in our wildest dreams
- or worst nightmares - did it ever occur to us that
the pension plan could be lost to the court. I believe
that it was two years later when we found that this
travesty of justice could actually take place.
While I knew when I filed and signed the 1999 return
that we had lost our pension plan, I believed, again
without a doubt, that those taxes would be paid.
Shortly after my husband’s death, before the return was
filed, I was told by several sources, including the
bankruptcy trustee, that remaining monies would go to
me as his beneficiary. When my husband passed away,
the bankruptcy court received an additional $750,000.00
- ¾ of a million dollars - from the proceeds of my
husband’s life insurance policy (monies which I still
contend rightfully belong to our children and me).
Therefore, although I no longer had faith or trust in
our “judicial” system, logic alone told me that there
would be more than enough monies to pay all taxes and
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: November 10, 2007