Royce A. Ellis - Page 14
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The Commissioner has prescribed two types of closing
agreements: (1) Form 866, Agreement as to Final Determination of
Tax Liability, is used to determine conclusively a taxpayer’s
total tax liability for a taxable period; and (2) Form 906,
Closing Agreement, is used if the closing agreement relates to
one or more separate items affecting the tax liability of a
taxpayer. Urbano v. Commissioner, supra; Zaentz v. Commissioner,
90 T.C. 753, 760-761 (1988); Rev. Proc. 68-16, 1968-1 C.B. 770.
The parties did not execute either a Form 866 or a Form 906.
The closing notice issued by respondent’s Ogden Service Center
did not constitute a closing agreement pursuant to section 7121.
Rather, it merely closed the Ogden Service Center’s inquiry into
the discrepancies between the gross receipts reported on
petitioner’s 2001 tax return and the Forms 1099 respondent
received from JPI. Although petitioner credibly contends that he
believed that 2001 was closed from further examination when he
received the closing notice, such a unilateral belief on his part
does not satisfy the requirements of section 7121. See Urbano v.
Commissioner, supra. Therefore, the Court finds that
petitioner’s 2001 tax year remained open for examination after he
received respondent’s Ogden Service Center’s closing notice.
2. Section 7605(b)
Petitioner contends that respondent’s Ogden Service Center’s
request for information and subsequent findings constituted an
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Last modified: November 10, 2007