Irs Case Brief

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ASSURED SOURCE, INC., A MICHIGAN CORPORATION, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. No. 4658-09L. United States Tax Court. (2010) STATEMENT OF FACTS: On February 19, 2008, respondent sent to petitioner a Letter 1153, which is a Trust Funds Recovery Penalty Letter, to inform petitioner of his intent to assess against it trust fund recovery penalties under section 6672 because of its failure to withhold and pay employment taxes for the first three quarters of 2007. The Letter 1153 gave petitioner 60 days to file a protest yet the petitioner failed to do so and penalties were assessed. On August 12, 2008, respondent sent to petitioner a Final Notice--Notice of Intent to Levy and Notice of Your Right to a Hearing with respect to the assessed penalties and on September 10, 2008 the petitioner filed a Form 12153 in a timely manner, stating that its liabilities for the penalties had been paid through voluntary payments, he had submitted a request for abatement on Form 843, and the collection activity had been stayed. On October 21, 2008, the settlement officer sent to petitioner a letter which scheduled a telephone CDP hearing and also informed petitioner that he had to provide a Form 433-B, Collection Information Statement for Businesses, if he wanted to be considered for any collection alternatives. Petitioner was also given an opportunity to identify and substantiate any payments of the penalty assessments and was offered a face-to-face hearing. Petitioner submitted to the IRS a Form 843, which is a Claim for Refund and Request for Abatement; however, petitioner failed to submit the required bond with that form. Therefore, respondent did not process the claim. On November 12, 2008, petitioner requested a postponement of the CDP hearing because he was working on an installment agreement with a revenue officer. The settlement

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