- 5 - pay $9,918.4 His reasons, as stated in the OIC, for thinking that he should be entitled to relief from interest and penalties included, inter alia: By agreeing to enter a plea * * * I spared the government the time and expense of indicting me. By entering into a plea agreement, I spared the government the time and expense of trying me. * * * * * * * By completing my probationary period without serious incident, I spared the government the time and expense of re-sentencing and incarcerating me. Petitioner also disputed his ability to pay, and he argued that it would “create an economic hardship and * * * be unfair and inequitable” to require him to pay the interest and penalty portions of his potential liability. Not surprisingly, petitioner’s OIC was rejected. In response to petitioner’s disagreement with the civil fraud penalties, respondent mailed petitioner a second Form 4549. This one showed an amount due of only $9,918 and specifically excluded civil fraud penalties. The Form 4549 noted that interest would be calculated at the time of assessment. Petitioner signed the Form 4549 and a Form 870, Waiver of Restrictions on Assessment and Collection of Deficiency in Tax 4 This amount represented the sum of the underpayments of tax for the taxable years in issue.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 NextLast modified: November 10, 2007