Sponberg v. Comm'r

¶2MEMORANDUM FINDINGS OF FACT AND OPINION

¶3CHIECHI, Judge: The petition in this case was filed in response to a "NOTICE OF DETERMINATION CONCERNING COLLECTION ACTION(S) UNDER SECTION 6320 and/or 6330" (notice of determination).

¶4We must consider whether respondent correctly determined in the notice of determination to proceed with the collection action with respect to each of petitioner's taxable years 1987 and 1990. We hold that, except for respondent's concession with respect to petitioner's taxable year 1987, respondent did.

¶5FINDINGS OF FACT

¶6Some of the facts have been stipulated and are so found with one exception stated herein.

¶7Petitioner resided in Palos Verdes Estates, California, at the time he filed the petition in this case.

¶8On August 15, 1985, April 15, 1986, and October 11, 1988, respectively, petitioner filed Forms 1040, U.S. Individual Income Tax Return (Form 1040), for his taxable years 1984 (1984 return), 1985 (1985 return), and 1986 (1986 return). As reflected in Form 4340, Certificate of Assessments, *212 Payments, and Other Specified Matters (Form 4340), with respect to each of petitioner's taxable years 1984 and 1985 and in respondent's complete statement of petitioner's account with respect to his taxable year 1986 (respondent's statement of petitioner's account with respect to his taxable year 1986), ¹ respondent assessed on various dates the following amounts of Federal income tax (tax), additions to tax, and interest:

¶9*213 On December 6, 1993, and October 30, 1993, respectively, petitioner filed Forms 1040 for his taxable years 1987 (1987 return) and 1990 (1990 return), the two years to which the collection action at issue relates. As reflected in Form 4340 with respect to each of petitioner's taxable years 1987 and 1990, respondent assessed on January 3, 1994, and December 6, 1993, respectively, the following amounts of tax, additions to tax, and interest:

¶10Petitioner made certain payments to the Internal Revenue Service (IRS) that respondent ultimately ² credited to petitioner's accounts with respect to his taxable years 1984, 1985, 1986, and/or 1990. Included within those payments were the following payments that respondent collected by levy from petitioner's wages from his employer KG7 K-Surf Radio for the pay periods indicated: ³

¶11*215 As reflected in Form 4340 with respect to each of petitioner's taxable years 1984 and 1985, respondent ultimately credited: (1) Petitioner's accounts with respect to his taxable years 1984 and 1985 with petitioner's payments totaling $ 1,277.20 and $ 1,547.36, respectively, consisting of each of the $ 706.14 payments set forth above that were made by levy from petitioner's wages for his pay periods that ended May 3, May 20, June 5, and June 20, 1991; (2) petitioner's account with respect to his taxable year 1985 with petitioner's payments totaling $ 1,412.28, consisting of each of the $ 706.14 payments set forth above that were made by levy from petitioner's wages for his pay periods that ended July 5 and July 19, 1991; (3) petitioner's account with respect to his taxable year 1985 with $ 54 of petitioner's payment of $ 706.14 set forth above that was made by levy from petitioner's wages for his pay period that ended August 8, 1991; ⁴ and (4) petitioner's account with respect to his taxable year 1985 with petitioner's payment of $ 122.47 set forth above that was made by levy from petitioner's wages for his pay period that ended August 20, 1991.

¶12*216 Also included within the payments that petitioner made to the IRS during the period March 20, 1996, through March 29, 1998, were 15 $ 1,000 payments that petitioner believed respondent should have credited against his unpaid liability for each of his taxable years 1987 and 1990. However, as reflected in Form 4340 with respect to each of petitioner's taxable years 1984 and 1985 and in respondent's statement of petitioner's account with respect to his taxable year 1986, respondent ultimately credited petitioner's 15 $ 1,000 payments as follows:

¶13Taxable Year to

¶14Which Payment     Date as of Which      Amount of

¶15Was Credited     Payment Was Credited   Payment Credited

¶16_______________    ____________________   ________________

¶17  1986          03/20/96        $ 1,000

¶18  1985          04/20/96         1,000

¶19  1985          05/19/96         1,000

¶20  1985          06/20/96         1,000

¶21  1985          07/20/96         1,000

¶22  1985          08/20/96   *217       1,000

¶23  1985          09/21/96         1,000

¶24  1985          10/22/96         1,000

¶25  1985          11/20/96         1,000

¶26  1985          12/20/96         1,000

¶27  1985          01/19/97         1,000

¶28  1985          03/04/97         1,000

¶29  1984          03/29/97         1,000

¶30  1984          06/01/97         1,000

¶31  1985          03/29/98         1,000

¶32 In addition to crediting petitioner's payments to his accounts with respect to his taxable years 1984, 1985, 1986, and/or 1990, respondent ultimately: (1) Credited petitioner's account with respect to each of his taxable years 1984, 1985, and 1987 with certain credits and (2) debited petitioner's account with respect to each of his taxable years (a) 1984 and 1985 to reflect certain refunds to him, (b) 1984, 1985, and 1986 to reflect the transfer of certain credits from each of those taxable*218 years to his taxable years 1984, 1985, and/or 1987, and (c) 1984, 1985, and 1987 to reflect certain corrections of payments and/or certain reversals of credits. As reflected in Form 4340 with respect to each of petitioner's taxable years 1984 and 1985 and in respondent's statement of petitioner's account with respect to his taxable year 1986, on various dates respondent credited and debited petitioner's account as follows:

¶33*219 As reflected in Form 4340 with respect to petitioner's taxable year 1987, respondent made the following assessments and credited and debited petitioner's account as follows:

¶34                    Assessment,   Payment,   Assessment

¶35        Explanation of      Other Debits    Credit   Date (23C,

¶36 Date      Transaction        (Reversal)   (Reversal)   RAC 006)

¶37 ____      _______________      ____________   __________  __________

¶38      Adjusted gross income

¶39         38,849.00

¶40      Taxable income

¶41         22,013.00

¶4212-06-93   Return filed and tax      $ 3,911.00         01-03-94

¶43       assessed

¶44       89221-338-08708-3 199351

¶4504-15-88   Extension of time to file

¶46       ext. date 08-15-88

¶47      Late filing penalty        879.98         01-03-94

¶48       199351

¶49      Failure to pay tax penalty     977.75         01-03-94

¶50       199351

¶51      Interest*220 assessed 199351     3,475.41         01-03-94

¶5208-08-94   Federal tax lien

¶5305-22-96   Collection statute

¶54       extension to 12-31-08

¶5506-01-97   Overpaid credit applied          $ 270.78

¶56       1040 198412

¶5706-01-97   Overpaid credit applied           880.46

¶58       1040 198412

¶5903-23-98   Interest overpayment              7.98

¶60       credit

¶61       1040 198412

¶6206-01-97   Overpaid credit reversed

¶63       1040 198412                (270.78)

¶6406-01-97   Overpaid credit reversed

¶65       1040 198412                (880.46)

¶6606-01-97   Overpaid credit applied           151.24

¶67       1040 198412

¶6810-17-98   Overpaid credit applied           448.28

¶69       1040 199712

¶7003-12-99   Legal/bankruptcy suit

¶71       pending

¶7208-21-89   Taxpayer delinquency notice

¶7301-24-94   Statutory notice of intent

¶74       to levy

¶7501-03-94   Statutory notice of balance

¶76       due

¶77Balance*221      $ 8,636.64

¶78As reflected in Form 4340 with respect to petitioner's taxable year 1990, respondent made the following assessments and credited petitioner's account as follows:

¶79                     Assessment,   Payment,   Assessment

¶80        Explanation of       Other Debits    Credit   Date (23C,

¶81 Date       Transaction         (Reversal)   (Reversal)   RAC 006)

¶82 ____      ______________       ____________   __________  _________

¶83      Adjusted gross income

¶84         22,419.00

¶85      Taxable income

¶86         13,016.00

¶8710-30-93   Return filed and tax      $ 1,954.00          12-06-93

¶88       assessed

¶89       89211-306-95415-3 199347

¶9010-30-93   Withholding and excess FICA           $ 573

¶9104-15-91   Extension of time to file

¶92       ext. date 08-15-91

¶9308-11-91   Extension of time to file

¶94       ext. date 10-15-91

¶9510-30-93   Payment with return           *222      516

¶96      Late filing penalty         310.73          12-06-93

¶97       199347

¶98      Failure to pay tax penalty     218.37          12-06-93

¶99       199347

¶100      Interest assessed          386.15          12-06-93

¶101       199347

¶10208-08-94   Federal tax lien

¶10305-28-96   Collection statute

¶104       extension to 12-31-08

¶10503-12-99   Legal/bankruptcy suit

¶106       pending

¶10712-06-93   Statutory notice of balance

¶108       due

¶10912-27-93   Statutory notice of intent

¶110        to levy

¶111Balance      $ 1,780.25

¶112On January 29, 1999, respondent issued to petitioner a final notice of intent to levy (notice of intent to levy) with respect to, inter alia, petitioner's taxable years 1987 and 1990. ⁵ That notice stated in pertinent part:

¶113Your Federal tax is still not paid. We previously asked you to pay this, but we still haven't received your payment. This letter is your notice of our intent to levy under Internal Revenue Code (IRC) Section 6331*223 and your right to receive Appeals consideration under IRC Section 6330.

¶114We may file a Notice of Federal Tax Lien at any time to protect the government's interest. A lien is a public notice to your creditors that the government has a right to your current assets, including any assets you acquire after we file the lien.

¶115If you don't pay the amount you owe, make alternative arrangements to pay, or request Appeals consideration within 30 days from the date of this letter, we may take your property, or rights to property, such as real estate, automobiles, business assets, bank accounts, wages, commissions, and other income. …

¶116… The amount you owe is:

¶117In response to the notice of intent to levy, on February 24, 1999, petitioner filed Form 12153, Request For a Collection Due Process Hearing (Form 12153), and requested a hearing with the IRS Appeals Office (Appeals Office).

¶118Sometime after February 24, 1999, the Appeals officer assigned to petitioner's case (Appeals officer) scheduled petitioner's Appeals Office hearing. The Appeals officer was unable to attend that scheduled hearing because of the death of the Appeals officer's father. Sometime thereafter, the Appeals officer sent petitioner a letter rescheduling petitioner's Appeals Office hearing on a date and at a time not disclosed by the record. Petitioner did not receive that letter until after the rescheduled date and time for that hearing had passed. Thereafter, at a time not disclosed by the record, petitioner had an opportunity via the*225 telephone to discuss with the Appeals officer and/or the Appeals officer's supervisor the notice of intent to levy with respect to petitioner's taxable years 1987 and 1990.

¶119During petitioner's communications with the Appeals Office, petitioner claimed that he had made an overpayment with respect to each of his taxable years 1984, 1985, and 1986 and that respondent should have applied such claimed overpayments against his unpaid liability for each of his taxable years 1987 and 1990. Petitioner did not provide the Appeals Office with evidence to verify any such claimed overpayments. During his communications with the Appeals Office, petitioner did not offer any collection alternatives, nor did he provide the Appeals Office with any financial statements.

¶120On May 24, 2000, respondent issued to petitioner a notice of determination with respect to, inter alia, his taxable years 1987 and 1990. That notice stated in pertinent part as follows:

¶121Summary of Determination:

¶122The Notice of Federal Tax Liens were filed on 8/18/94 and are not subject to the Due Process Procedures under IRC Section 6320.

¶123With respect to the Notice of Intent to Levy, there has been*226 no response to requests for the completion of financial statements in order to determine if a possible collection alternative is feasible. We are sustaining the District's decision to take appropriate enforcement action.

¶124*   *   *   *   *   *   *   *   *   *   *   *   *

¶125Applicable Law and Administrative Procedures

¶126With the best information available, the requirement [sic] of various applicable law or administrative procedures have been met.

¶127Notice and Demand was made for the above periods as verified by review of the transcripts and revenue officer history and correspondence.

¶128IRC Section 6331(d) requires that the IRS notify a taxpayer at least 30 days before a Notice of Levy can be issued. The 30 day notice was mailed to the taxpayer via certified mail and the return receipt was signed.

¶129IRC Section 6330(a) states that no levy may be made unless the IRS notifies a taxpayer of the opportunity for a hearing with the IRS Office of Appeals. Letter 1058 "Final Notice" was sent to the taxpayer by certified mail. The hearing was requested within the appropriate time frames.

¶130This appeals*227 officer had no prior involvement with respect to these liabilities.

¶131Relevant Issues Presented by the Taxpayer

¶132The attachment to Form 12153 referred to the taxpayers' original audits for 1984 and 1985 and the penalties and interest assessed. ¹ The taxpayer has fully paid those tax years and copies of the lien releases were provided to the taxpayer. Those tax years do not fall under the Due Process Procedures. Any claims for abatement of penalties and interest should be made under the appropriate method of filing.

¶133The lien notices for 1987, 1988, and 1990 were filed on 8/18/94 and are not subject to appeal under IRC Section 6320.

¶134The taxpayer has not raised any possible collection alternative.

¶135Balancing Efficient Collection and Intrusiveness

¶136The revenue officer issued L 1058 after identifying levy sources. Repeated requests were made for financial statements and they were not provided nor has the taxpayer raised any possible collection alternative for these years. It is his contention that prior years are overpaid, yet no evidence has been provided*228 to verify that any possible overpayments not previously addressed would full pay these tax years. Therefore, since the taxpayer has not provided any financial statements to determine if there may be a less intrusive method of collection, the District should proceed with levy enforcement.

¶137OPINION

¶138Petitioner contends that respondent has not accounted for all of the payments that he made to the IRS with respect to his taxable years 1984, 1985, 1986, 1987, and/or 1990. ⁶ According to petitioner, if respondent had properly accounted for all such payments, respondent's records would show that petitioner made overpayments with respect to his taxable years 1984, 1985, and 1986, which overpayments respondent should have applied against his liability for each of his taxable years 1987 and 1990, the two years to which the collection action at issue relates. ⁷ Respondent counters that, with one exception, respondent has accounted for all of the payments that petitioner made to respondent. With respect to that one exception, respondent concedes that respondent did not account for $ 652.14 of the $ 706.14 payment made by levy from petitioner's wages for the pay period that ended August 8, 1991, and*229 that respondent should have credited that $ 652.14 as of August 29, 1991, to petitioner's account with respect to his taxable year 1987. See supra note 4.

¶139Because the amount of the liability that remains unpaid for each of petitioner's taxable years 1987 and 1990 is properly at issue, we review respondent's determination de novo. ⁸Boyd v. Comm'r, 117 T.C. 127, 131 (2001); Landry v. Comm'r, 116 T.C. 60, 62 (2001).

¶140*230 The record in this case includes Form 4340 with respect to each of petitioner's taxable years 1984, 1985, 1987, and 1990 and respondent's statement of petitioner's account with respect to his taxable year 1986. Although as reflected in those forms and that statement respondent made numerous and various corrections, including so-called reversals, to petitioner's accounts with respect to his taxable years 1984, 1985, 1986, and 1987, we have been able to reconcile all of the entries therein. Except for respondent's concession regarding petitioner's taxable year 1987, see supra note 4, on the record before us, we are unable to find that respondent has not accounted for all of the payments that petitioner made to the IRS with respect to his taxable years 1984, 1985, 1986, 1987, and/or 1990. Nor are we able to find on the instant record that petitioner made an overpayment with respect to any of his taxable years 1984, 1985, and 1986 for which respondent has not accounted and which respondent should have applied against petitioner's liability for each of his taxable years 1987 and 1990.

¶141Based upon our examination of the entire record before us, we find that, except for respondent's concession*231 regarding petitioner's taxable year 1987, see supra note 4, petitioner has not paid the liability for each of his taxable years 1987 and 1990 that respondent is now attempting to collect.

¶142We have considered all of the contentions and arguments that petitioner advanced at the trial in this case and that are not discussed herein, and we find them to be without merit and/or irrelevant.

¶143To reflect the foregoing and the concession of respondent with respect to petitioner's taxable year 1987,

¶144Decision will be entered under Rule 155. ⁹

¶145APPENDIX A

¶146Information Reflected in Form 4340 With Respect to Petitioner's Taxable Year 1984

¶147                    Assessment,   Payment,   Assessment

¶148         Explanation of     Other Debits   Credit    Date (23C,

¶149 Date        Transaction      (Reversal)   (Reversal)   RAC 006)

¶150*232  ____       ______________     ____________   __________   __________

¶151      Adjusted gross income

¶152         20,567.00

¶153      Taxable income

¶154         19,462.00

¶15508-15-85   Return filed and tax     $ 2,658.00           10-28-85

¶156       assessed

¶157       17211-278-01512-5 198542

¶15808-15-85   Withholding and excess           $ 189.00

¶159       FICA

¶16004-15-85   Extension of time to file

¶161       ext. date 08-15-85

¶162      Estimated tax penalty      153.00           10-28-85

¶163       198542

¶164      Failure to pay tax penalty    86.41           10-28-85

¶165       198542

¶166      Interest assessed 198542     161.13           10-28-85

¶16704-28-86   Overpaid credit applied            216.39

¶168       1040 198512

¶16904-15-86   Overpaid credit applied           2,869.54

¶170       1040 198512

¶171      Failure to pay tax penalty*233    61.73           04-28-86

¶172       198616

¶173      Interest assessed 198616     141.75           04-28-86

¶17404-28-86   Refund                    (12.91)

¶175      Additional tax assessed by     0.00           12-05-88

¶176       examination

¶177       29247-720-10501-8 198847

¶17811-21-88   Legal/bankruptcy suit

¶179       pending

¶180      Late filing penalty 198923   1,215.40           06-19-89

¶181      Additional tax assessed by   3,608.00           06-19-89

¶182       examination

¶183       29247-550-70013-9 198923

¶18405-26-89   Legal/bankruptcy suit no

¶185       longer pending

¶18606-19-89   Failure to pay tax penalty    (24.69)

¶187       abated

¶188      Interest assessed 198923    2,493.61           06-19-89

¶18901-10-90   Federal tax lien

¶190      Additional tax assessed      0.00           07-02-90

¶191       89254-559-18001-0 199025

¶19207-09-91  *234  Subsequent payment             2,824.56

¶19308-29-91   Overpaid credit applied            54.00

¶194       1040 198912

¶19510-16-93   Overpaid credit applied            87.84

¶196       1040 199212

¶19710-16-93   Overpaid credit applied            277.04

¶198       1040 199212

¶19912-07-93   Subsequent payment              144.96

¶20010-19-92   Overpaid credit applied            389.51

¶201       1040 199112

¶20201-08-93   Overpaid credit applied            105.01

¶203       1040 199112

¶20407-09-91   Subsequent payment             (2,824.56)

¶205       corrected

¶20603-29-94   Subsequent payment              157.73

¶20705-02-95   Subsequent payment               0.00

¶208       miscellaneous payment

¶20905-22-95   Fees and collection costs     14.00

¶21004-20-96   Subsequent payment             1,000.00

¶21105-19-96   Subsequent payment         *235     1,000.00

¶21203-20-96   Overpaid credit applied            663.80

¶213       1040 198612

¶21405-22-96   Collection statute

¶215       extension to 12-31-08

¶21606-20-96   Subsequent payment             1,000.00

¶21707-20-96   Subsequent payment             1,000.00

¶21808-20-96   Subsequent payment             1,000.00

¶21909-21-96   Subsequent payment             1,000.00

¶220      Failure to pay tax penalty    573.57           10-14-96

¶221       199640

¶22210-22-96   Subsequent payment             1,000.00

¶223      Interest assessed        763.69           11-11-96

¶224       199644

¶225      Failure to pay tax penalty    236.31           11-11-96

¶226       199644

¶22711-20-96   Subsequent payment             1,000.00

¶228      Interest assessed       1,000.00           12-16-96

¶229       199649

¶23012-20-96   Subsequent*236 payment             1,000.00

¶231      Interest assessed       1,000.00           02-03-97

¶232       199704

¶23301-19-97   Subsequent payment             1,000.00

¶234      Interest assessed       1,000.00           02-10-97

¶235       199705

¶23603-04-97   Subsequent payment             1,000.00

¶237      Interest assessed       1,000.00           03-31-97

¶238       199712

¶23903-29-97   Subsequent payment             1,000.00

¶240      Interest assessed       1,000.00           04-21-97

¶241       199715

¶24205-04-97   Subsequent payment              335.29

¶243      Interest assessed        664.71           05-26-97

¶244       199720

¶24505-04-97   Overpayment credit              (335.29)

¶246       transferred

¶247       1040 198512

¶24806-01-97   Subsequent payment      *237        1,000.00

¶24906-01-97   Overpayment credit              (729.22)

¶250       transferred

¶251       1040 198512

¶25206-01-97   Overpayment credit              (270.78)

¶253       transferred

¶254       1040 198712

¶25506-20-97   Federal tax lien released

¶25611-17-90   Subsequent payment              706.14

¶25712-05-90   Subsequent payment              706.14

¶25812-20-90   Subsequent payment              706.14

¶25901-07-91   Subsequent payment              706.14

¶26001-30-91   Subsequent payment              706.14

¶26102-04-91   Subsequent payment              706.14

¶26202-22-91   Subsequent payment              706.14

¶26303-03-91   Subsequent payment              706.14

¶26403-26-91   Subsequent payment              706.14

¶26504-05-91   Subsequent payment              706.14

¶26604-22-91   Subsequent payment     *238          706.14

¶26703-23-98   Failure to pay tax penalty   (478.63)

¶268       abated

¶26903-23-98   Interest abated        (4,902.19)

¶27007-09-91   Subsequent payment             1,277.20

¶27108-01-91   Subsequent payment             1,412.28

¶27209-03-91   Subsequent payment              122.47

¶27304-06-98   Interest abated         (119.04)

¶274      Failure to pay tax penalty     0.00           04-20-98

¶275       199814

¶276      Restricted interest        0.00           04-20-98

¶277       assessed 199814

¶278      Additional tax assessed      0.00           04-20-98

¶279       89254-489-15000-8 199814

¶28007-09-91   Subsequent payment             (1,547.36)

¶281       corrected

¶28207-09-91   Subsequent payment             1,547.36

¶28308-01-91   Subsequent payment             (1,412.28)

¶284       corrected

¶28509-03-91   Subsequent*239 payment              (122.47)

¶286       corrected

¶28712-07-93   Subsequent payment              (144.96)

¶288       corrected

¶28903-29-94   Subsequent payment              (157.73)

¶290       corrected

¶29104-20-96   Subsequent payment             (1,000.00)

¶292       corrected

¶29305-19-96   Subsequent payment             (1,000.00)

¶294       corrected

¶29506-20-96   Subsequent payment             (1,000.00)

¶296       corrected

¶29707-20-96   Subsequent payment             (1,000.00)

¶298       corrected

¶29908-20-96   Subsequent payment             (1,000.00)

¶300       corrected

¶30109-21-96   Subsequent payment             (1,000.00)

¶302       corrected

¶30310-22-96   Subsequent payment             (1,000.00)

¶304       corrected

¶30511-20-96   Subsequent payment             (1,000.00)

¶306       corrected

¶30712-20-96  *240  Subsequent payment             (1,000.00)

¶308       corrected

¶30901-19-97   Subsequent payment             (1,000.00)

¶310       corrected

¶31103-04-97   Subsequent payment             (1,000.00)

¶312       corrected

¶31305-04-97   Subsequent payment              (664.71)

¶314       corrected

¶31505-04-97   Subsequent payment              664.71

¶31608-29-91   Overpaid credit reversed           (54.00)

¶317       1040 198512

¶31810-19-92   Overpaid credit reversed           (389.51)

¶319       1040 198512

¶32001-08-93   Overpaid credit reversed           (105.01)

¶321       1040 198512

¶32210-16-93   Overpaid credit reversed           (277.04)

¶323       1040 198512

¶32410-16-93   Overpaid credit reversed           (87.84)

¶325       1040 198512

¶32603-20-96   Overpaid credit reversed           (663.80)

¶327       1040 198512

¶32806-01-97   Overpayment credit*241              (119.54)

¶329       transferred

¶330       1040 198512

¶33106-01-97   Overpayment credit              (880.46)

¶332       transferred

¶333       1040 198712

¶33403-23-98   Interest due taxpayer              7.98

¶33503-23-98   Overpayment interest              (7.98)

¶336       transferred

¶337       1040 198712

¶33803-29-97   Subsequent payment             (1,000.00)

¶339       corrected

¶34006-01-97   Subsequent payment              270.78

¶34106-01-97   Subsequent payment              880.46

¶342      Additional tax assessed      0.00           10-05-98

¶343       29254-657-18007-8 199838

¶34406-01-97   Overpayment credit              (151.24)

¶345       transferred

¶346       1040 198712

¶34710-28-85   Statutory notice of

¶348       balance due

¶34912-02-85   Notice of balance due

¶35002-17-86   Statutory notice of intent

¶351*242      to levy

¶35206-19-89   Statutory notice of

¶353       balance due

¶35407-24-89   Notice of balance due

¶35511-12-90   Statutory notice of intent

¶356       to levy

¶35705-11-98   Statutory notice of

¶358       balance due

¶35906-01-98   Statutory notice of intent

¶360       to levy

¶361Balance    $ 0.00

¶362               APPENDIX B

¶363        Information Reflected in Form 4340 With

¶364       Respect to Petitioner's Taxable Year 1985

¶365                    Assessment,    Payment,   Assessment

¶366        Explanation of      Other Debits    Credit    Date (23C,

¶367 Date       Transaction       (Reversal)    (Reversal)   RAC 006)

¶368 ____      ______________      ____________   __________   __________

¶369      Adjusted gross income

¶370       20,059.00

¶371      Taxable income

¶372       16,354.00

¶37304-15-86   Return filed and tax     $ 1,817.00           04-28-86

¶374       assessed

¶375*243        31211-089-63604-6 198616

¶37604-15-86   Withholding and excess FICA        $ 5,280.00

¶37704-15-86   Overpayment credit

¶378       transferred               (3,085.93)

¶379       1040 198412

¶38004-28-86   Interest due taxpayer              0.77

¶38104-28-86   Refund

¶382                           (377.84)

¶383      Additional tax assessed by     0.00           12-05-88

¶384       examination

¶385       29247-720-10502-8 198847

¶38611-21-88   Legal/bankruptcy suit

¶387       pending

¶388      Additional tax assessed by   7,283.00           06-19-89

¶389       examination

¶390       29247-550-70014-9 198923

¶39105-26-89   Legal/bankruptcy suit no

¶392       longer pending

¶393      Interest assessed 198923    2,717.50           06-19-89

¶39401-10-90   Federal tax lien

¶39511-17-90   Subsequent payment              706.14

¶396      Additional tax assessed*244      0.00           12-24-90

¶397       89254-739-00011-0 199050

¶39812-05-90   Subsequent payment              706.14

¶39912-20-90   Subsequent payment              706.14

¶40001-07-91   Subsequent payment              706.14

¶40101-30-91   Subsequent payment              706.14

¶40202-04-91   Subsequent payment              706.14

¶40302-22-91   Subsequent payment              706.14

¶40403-03-91   Subsequent payment              706.14

¶40503-26-91   Subsequent payment              706.14

¶40604-05-91   Subsequent payment              706.14

¶40704-22-91   Subsequent payment              706.14

¶40808-01-91   Subsequent payment             1,412.28

¶40909-03-91   Subsequent payment              122.47

¶41007-09-91   Subsequent payment             2,824.56

¶411      Interest assessed       1,409.98     *245       03-07-94

¶412       199408

¶413      Failure to pay tax penalty    716.37           03-07-94

¶414       199408

¶41505-22-96   Collection statute

¶416       extension to 12-31-08

¶41705-04-97   Overpaid credit applied            335.29

¶418       1040 198412

¶419      Failure to pay tax penalty     0.02           05-26-97

¶420       199720

¶421      Interest assessed        335.27           05-26-97

¶422       199720

¶42306-01-97   Overpaid credit applied            729.22

¶424       1040 198412

¶425      Interest assessed        729.22           06-23-97

¶426       199724

¶42706-20-97   Federal tax lien released

¶42811-17-90   Subsequent payment

¶429       corrected                 (706.14)

¶43012-05-90   Subsequent payment

¶431       corrected                 (706.14)

¶43212-20-90   Subsequent payment

¶433       corrected*246                 (706.14)

¶43401-07-91   Subsequent payment

¶435       corrected                 (706.14)

¶43601-30-91   Subsequent payment

¶437       corrected                 (706.14)

¶43802-04-91   Subsequent payment

¶439       corrected                 (706.14)

¶44002-22-91   Subsequent payment

¶441       corrected                 (706.14)

¶44203-03-91   Subsequent payment

¶443       corrected                 (706.14)

¶44403-26-91   Subsequent payment

¶445       corrected                 (706.14)

¶44604-05-91   Subsequent payment

¶447       corrected                 (706.14)

¶44804-22-91   Subsequent payment

¶449       corrected                 (706.14)

¶45007-09-91   Subsequent payment

¶451       corrected                (2,824.56)

¶45208-01-91   Subsequent payment

¶453*247    corrected                (1,412.28)

¶45409-03-91   Subsequent payment

¶455       corrected                 (122.47)

¶456      Failure to pay tax penalty   1,104.36           03-23-98

¶457       199810

¶458      Interest assessed       9,816.51           03-23-98

¶459       199810

¶46007-09-91   Subsequent payment             1,547.36

¶46108-01-91   Subsequent payment             1,412.28

¶46208-29-91   Subsequent payment               54.00

¶46309-03-91   Subsequent payment              122.47

¶46410-19-92   Subsequent payment              389.51

¶46501-08-93   Subsequent payment              105.01

¶46610-16-93   Subsequent payment               87.84

¶46710-16-93   Subsequent payment              277.04

¶46812-07-93   Subsequent payment              144.96

¶46903-29-94   Subsequent payment      *248         157.73

¶47003-20-96   Subsequent payment              663.80

¶47104-20-96   Subsequent payment             1,000.00

¶47205-19-96   Subsequent payment             1,000.00

¶47306-20-96   Subsequent payment             1,000.00

¶47407-20-96   Subsequent payment             1,000.00

¶47508-20-96   Subsequent payment             1,000.00

¶47609-21-96   Subsequent payment             1,000.00

¶47710-22-96   Subsequent payment             1,000.00

¶47811-20-96   Subsequent payment             1,000.00

¶47912-20-96   Subsequent payment             1,000.00

¶48001-19-97   Subsequent payment             1,000.00

¶48103-04-97   Subsequent payment             1,000.00

¶48205-04-97   Subsequent payment              664.71

¶48303-29-98   Subsequent payment             1,000.00

¶48404-20-98   Failure to pay tax penalty   (406.60)

¶485*249  abated

¶48604-20-98   Interest abated        (4,894.10)

¶48703-23-89   Overpaid credit applied            119.54

¶488       1040 198412

¶48904-20-98   Interest abated          (0.77)

¶49006-19-89   Statutory notice of balance

¶491       due

¶49207-24-89   Notice of balance due

¶49303-23-98   Statutory notice of balance

¶494       due

¶495Balance    $ 0.00

¶496               APPENDIX C

¶497  Information Reflected in Respondent's Statement of Petitioner's

¶498      Account With Respect to His Taxable Year 1986

¶499Transaction

¶500  Date     Amount       Transaction Explanation

¶501___________   ______       _______________________

¶50210-11-88   $ 522.00    Tax return filed -- amount of tax assessed

¶50304-15-87    552.00-   Credit for withholding and excess FICA taxes

¶50404-15-87     0.00    Request for extension of time to file approved --

¶505              extended to 08-15-87

¶50609-16-91    143.99    Negligence penalty charge

¶50709-16-91    100.00    Penalty charge for*250 late filing

¶50809-16-91    334.00    Additional tax assessed after return examination

¶50909-16-91    255.65    Interest charge

¶51008-29-94     10.00    Collection charge-lien fee

¶51102-18-96    957.00-   Payment received

¶51203-11-96     29.86    Interest charge

¶51303-11-96     83.50    Penalty charge for late payment of tax

¶51403-20-96   1,000.00-   Payment received

¶51504-15-96    336.20    Interest charge

¶51603-20-96    663.80    Credit transferred to another period or account