Richard M. Downing - Page 12




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               * * * a credit of $25,000 that was paid with Form 4868                 
               * * *.  The IRS stamped the page one of the Form 1040                  
               as being received on May 17, 2001, and processed the                   
               return without a signature.  The Form 1040 shows that                  
               the taxpayer was filing as married filing separate, and                
               that his spouse was Astrid Downing. * * *                              
                         *    *    *    *    *    *    *                              
               The administrative file includes an amended tax return                 
               which was signed by the taxpayer and the preparer on                   
               October 25, 1996.  The amended tax return shows that                   
               the taxpayer is electing to file a joint income tax                    
               return with Astrid Downing, however it was not                         
               processed by the IRS.                                                  
                         *    *    *    *    *    *    *                              
               All legal and procedural requirements are concluded to                 
               have been met in this case.                                            
                         *    *    *    *    *    *    *                              
               The transcripts show that the taxpayer was given credit                
               for $25,000 on the 1996 tax module, and that a refund                  
               was issued to the taxpayer’s last known address.  The                  
               taxpayer has not established that an amended tax return                
               for 1995 electing to file jointly was filed within                     
               three years of the last date prescribed by law for                     
               filing of the separate return or returns, without                      
               taking into account any extension of time granted to                   
               either spouse.                                                         
               It is my determination that the IRS allow a credit of                  
               $8,728.00 for 1995, abate the failure to file penalty                  
               for 1995 and abate the interest and failure to pay                     
               penalty associated with the $25,000.00 payment from the                
               date it was received, June 30, 1996, until the date the                
               IRS issued a notice of demand for payment for 1995                     
               which was on November 12, 2001.                                        













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