- 4 - Lien Filing and Notice of Your Right to a Hearing Under IRC 6320 (first notice of Federal tax lien). The first notice of Federal tax lien indicated the “Type of Tax” was Form 5329 and the balance owing was $6,592. The U.S. Postal Service returned the first notice of Federal tax lien to respondent unclaimed. Petitioners did not submit to respondent a request for an administrative hearing with respect to the first notice of Federal tax lien. Respondent’s certificate of official record for 1998 (1998 record) indicated that on April 4, 2005, an overpayment credit of $4,664 from petitioners’ 2004 tax year was applied to the balance owing in 1998; i.e., the 10-percent additional tax liability.4 The balance owing as indicated on the first notice of Federal tax lien was not reduced to reflect the $4,664 overpayment credit. D. Offer-in-Compromise On July 26, 2004, respondent received from petitioners a Form 656, Offer-in-Compromise, offering $2,500 to compromise their outstanding tax liabilities for the years at issue with a Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals. Petitioners failed to provide 4 Respondent produced two certificates of official record for 1998. One record pertains to the Form 5329 10-percent additional tax liability and the other record pertains to petitioners’ underpayment of individual income tax for 1998 other than the 10-percent additional tax. For purposes of this case, the term “1998 record” refers to the Form 5329 10-percent additional tax liability.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 NextLast modified: November 10, 2007