Donald Ray Hartley - Page 6




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          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.                                         






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Last modified: November 10, 2007