Royce A. Ellis - Page 13
- 13 -
respondent’s determinations of petitioner’s gross receipts (as
reduced by concessions).
C. Whether Respondent’s Examination of Petitioner’s 2001 Tax
Year Was Invalid.
1. 2001 Closing Agreement
Petitioner contends that the August 18, 2004, closing notice
issued by respondent’s Ogden Service Center was a closing
agreement within the meaning of section 7121. Consequently,
because there was no showing of fraud or misrepresentation,
petitioner asserts Agent Daniels’s examination of his 2001 return
The Commissioner is authorized to enter into a closing
agreement with any person regarding his or her liability for any
taxable period. Sec. 7121(a). Section 7121 sets forth the
exclusive means by which a closing agreement between the
Commissioner and a taxpayer may be accorded finality. Urbano v.
Commissioner, 122 T.C. 384, 393-394 (2004). Closing agreements
are final, conclusive, and binding on the parties as to matters
agreed upon and may not be annulled, modified, set aside, or
disregarded in any suit or proceeding unless there is a showing
of fraud, malfeasance, or misrepresentation of a material fact.
Sec. 7121(b); Urbano v. Commissioner, supra. All closing
agreements must be executed on forms prescribed by the Internal
Revenue Service. Urbano v. Commissioner, supra; sec.
301.7121-1(d), Proced. & Admin. Regs.
Page: 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Last modified: November 10, 2007