- 8 - The record in this case indicates only one levy on petitioner’s salary in 1997, and that was in December, in the amount of $1,186.83. Petitioner, however, must include her wages for 1997 in gross income, including any portion that was withheld and paid directly to the IRS for application against her liability for the years 1990, 1992 and 1993. Old Colony Trust Co. v. Commissioner, 279 U.S. 716, 729 (1929). Although her salary was the subject of a levy, that does not mean the levied amount is excluded from her income for Federal income tax purposes. Contrary to her belief, the levied amount is includable in her gross income. Both of petitioner’s arguments, however, that she is entitled to additional deductions and that her tax is less than that assessed because her salary in 1997 is less than that shown on her Form W-2, are precluded in this action. The parties agree that the statutory notices of deficiency for the years at issue were sent by certified mail to petitioner’s then and present address of record with the Internal Revenue Service. Petitioner did not argue or present any evidence at trial that she did not receive the relevant statutory notices of deficiency. Petitioner is therefore precluded from challenging her underlying tax liabilities, and those tax liabilities are not properly at issue here. Sec. 6330(c)(2)(B).Page: Previous 1 2 3 4 5 6 7 8 9 NextLast modified: November 10, 2007