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           
          was invalid.                                                                
               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:  Previous  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next 

Last modified: November 10, 2007