T.C. Mem o. 2 01 3- 21 7

UNITED STAT ES TAX COURT

CREDITRON FINANCI AL CORPORATION, Pet it io ne r v. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 19 08 0- 07
. Fil edSep te m be r 16 , 20 13
.

A.D. Cov atto (anoff

ic er), fo r pe ti ti on er. Kell y R. Mo rri so n- Lee, fo r res po nd en t.

MEMORANDUM OPINION CHIECHI, J ud ge : Th is cas e is be fo re u s o n re sp on de nt ’s m ot io n t o d is m is s fo r la ck of ju ris di ct io n a s s up pl em en te d. (Fo r co nv en ie nc e, we sh al l re fer t o 1

Pet it io ne r fi le d a n o pp os it io n t o re sp on de nt ’s m ot io n t o d is m is s fo r la ckof 1 juri sd ic ti on (pe ti ti on er’s o pp os it io n) an d ares po ns e to res po nd en t’s m ot io n t o di sm is s fo r la ckof ju ris di ct io n a s s up pl em en te d.- 2 -

[* 2] res po nd en t’s m ot io n t o d is m is s fo r la ckof ju ris di ct io n a s s up pl em en te d a s
res po nd en t’s m ot io n.) We sh al l g ran t re sp on de nt ’s m ot io n. Bac kg ro un d The reco rdest ab li sh es an d/ orth e p art ie s d o n otdi sp ut e th e fo ll owi ng . Pet it io ne r’s pr in ci pa l p la ce o f bu si ne ss was i n Eri e, Pen ns y lv an ia , at the ti m e itfil edth e p et it io n i n t hi s ca se . Pet it io ne r fi le d F orm

94 1, Em pl oyer’s Quarte rly Fede ral Tax R eturn (F orm 94 1) , for th e qua rte r en de d S ep te m be r 30 , 20 05 (Sep te m

be r 30 , 20 05 qu art er). Pet it io ne r di d n otpa y

all of t he Fed eral tax es th atitrep orte d i n t ha t re tu rn(pe ti

ti on er’s u np ai d F orm

94 1 t ax es forth e Sep te m be r 30 , 20 05 qu art er). Res po nd en t t im el y

ass es se d p et it io ne r’s unpa idFo rm 94 1 t ax es forth e Sep te m be r 30 , 20 05 qu art er, as well as a n a dd it io n t o t ax un de r se ct io n 6 65 1( a)(2 ) 2
an d i nt eres t as pro vi de d b y law fo r th atqu art er. (We sh al l re fer t o a ny suc h u np ai d
as se ss edam ou nt s wi thres pe ctto th e Sep te m be r 30 , 20 05 qu art er, as well as in te res t as pro vi de d b y

law ac cru edth erea fte r, as pe ti ti on er’s u np ai d l iabi li ty for th e Sep te m

be r 30 , 20 05 qu art er.)

All sec ti on refe ren ces are t o t he Int ern al Rev enue Co de ineffe ctat a ll 2 rel ev an t t im es .- 3 -

[* 3] On J anua ry

17 an d 2 6, 2 00 6, re sp ect iv el y , res po nd en t i ss ue d t o p et it io ne r (1 ) a n ot ic e o f in te ntto lev y an d n ot ic e o f y ou r ri gh t t o ahe ari ng (no ti ce o f in te nt to lev y ) wit h re sp ectto pe ti ti on er’s u np ai d l iabi li ty for the Sep te m be r 30 , 20 05 qu art er (n ot ic e o f in te ntto lev y with re sp ectto th e Sep te m be r 30 , 20 05 qu art er)
an d (2 ) a n ot ic e o f Fed eral tax li enfil in g a ndy ou r ri gh t t o ahe ari ng un de r IRC 63 20 (no ti ce o f ta x l ie n) with re sp ectto th atli ab il it y (no ti ce o f ta x l ie n wi th
res pe ctto th e Sep te m

be r 30 , 20 05 qu art er). In t he no ti ce o f in te ntto lev y with 3
res pe ctto th e Sep te m

be r 30 , 20 05 qu art er, res po nd en t i nd ic at edth atif p et it io ne r
wan te d t o re qu es t wh atres po nd en t re ferr edto as aco ll ect io n due pro ces s h eari ng with re sp on de nt ’s App eal s Off ic e (App eal s Off

ic e) re gard in g t ha t n ot ic e, itha d t o 4 do so withi n 3 0 d ay s af

te r th e d at e o f th atno ti ce (i .e., by Feb ru ary 16 , 20 06 , th e 30 th da y aft er J anua ry

17 , 20 06 , th e d at e o n wh ic h re sp on de ntis su edth e n ot ic e o f in te ntto lev y

with re sp ectto th e Sep te m be r 30 , 20 05 qu art er). Inth e n ot ic e o f ta x

The Co m m is si on er o f In te rn al Rev enue (Co m m is si on er) h as pre sc rib ed 3 res pe ct iv e fo rm

let te rs to serve as ( 1) a no ti ce o f in te ntto lev y an d n ot ic e o f y ou r rig htto a he ari ng an d (2 ) a n ot ic e o f Fed eral tax li enfil in g a ndy ou r ri gh t t o a he ari ng un de r IRC 63 20 . The p res cri be d fo rm let te rs forth os e res pe ct iv e n ot ic es are Let te r 10 58 an d Let te r 31 72 . Each o f th os e p res cri be d fo rm let te rs in di cat es th atth e Co m

m is si on er i s at ta ch in g t o e ach su chlet te r, in te r al ia , Form 12 15 3, Reque stfor

a Co ll ect io n Du e Pro ces s o r Equ iv al en t Hea rin g (F orm 12 15 3)
. W e sh al l re fer t o a n Ap pe al s Off ic e h eari ng un de r se cs . 63 20 an d 6 33 0 a s 4 anApp eal s Off

ic e h eari ng .- 4 -

[* 4] li enwith re sp ectto th e Sep te m be r 30 , 20 05 qu art er, res po nd en t i nd ic at edth at if p et it io ne r wan te d t o re qu es t an App eal s Off ic e h eari ng reg ard in g t ha t n ot ic e, it ha d t o d o s o b y

Feb ru ary 27 , 20 06
. Pet it io ne r ti m el y

subm it te d t o re sp on de ntFo rm 12 15 3 re gard in g t he no ti ce of in te ntto lev y

with re sp ectto th e Sep te m be r 30 , 20 05 qu art er an d re gard in g t he
no ti ce o f ta x l ie n wi thres pe ctto th e Sep te m be r 30 , 20 05 qu art er. 5 On Au gu st10 , 20 06 , th e App eal s Off ic e is su edto pe ti ti on er a n ot ic e o f de te rm in at io n c on cern in g c ol le ct io n a ct io n( s) un de r se ct io n 6 32 0 and/o r 63 30 (n ot ic e o f de te rm in at io n) with re sp ectto pe ti ti on er’s u np ai d l iabi li ty for the Sep te m be r 30 , 20 05 qu art er (n ot ic e o f de te rm in at io n wi thres pe ctto th e Sep te m be r 30 , 20 05 qu art er). As di sc us se d b el ow, p et it io ne r di d n otfil e a p et it io n wi th
res pe ctto th atno ti ce u nt il Aug us t 2 3, 2 00 7. As d is cu ss edinm or e d et ai l b el ow, o n J un e 7 , 20 07 , pet it io ne r subm it te d t o
res po nd en t Fo rm

94 23 , Col le ct io n Ap pe al Reque st(Fo rm 94 23 ), with re sp ectto , in te r al ia , pet it io ne r’s unpa idli ab il it y for th e Sep te m

be r 30 , 20 05 qu art er (p et iti on er’s Jun e 7 , 20 07 Fo rm 94 23 ). As al so di sc us se d i n m or e d et ai l b el ow, o n J ul y

Pet it io ne r’s Fo rm

12 15 3 t ha t p et it io ne r subm it te d t o re sp on de ntreg ard in g 5 th e n ot ic e o f in te ntto lev y with re sp ectto th e Sep te m be r 30 , 20 05 qu art er an d reg ard in g t he no ti ce o f ta x l ie n wi th res pe ctto th e Sep te m be r 30 , 20 05 qu art er i s no t p artof t he reco rdinth is cas e.- 5 -

[* 5] 31 , 20 07 , pet it io ne r subm it te d t o re sp on de ntan ot he r Fo rm 94 23 with re sp ect to , in te r al ia , th atli ab il it y (pe ti ti on er’s Jul y

31 , 20 07 Fo rm

94 23 ). Pet it io ne r fi le d F orm

94 1 fo r th e qua rte r en de d Dec em be r 31 , 20 05 (Decem

be r 31 , 20 05 qu art er). Pet it io ne r di d n otpa y all of t he Fed eral tax es th atit rep orte d i n t ha t re tu rn(pe ti ti on er’s u np ai d F orm 94 1 t ax es forth e Dece m be r 31 , 20 05 qu art er). Res po nd en t t im el y

ass es se d p et it io ne r’s unpa idFo rm 94 1 t ax es forth e Decem be r 31 , 20 05 qu art er, as well as a n a dd it io n t o t ax un de r se ct io n 6 65 1( a)(2 )
an d i nt eres t as pro vi de d b y law fo r th atqu art er. (We sh al l re fer t o a ny suc h u np ai d
as se ss edam ou nt s wi thres pe ctto th e Dece m be r 31 , 20 05 qu art er, as well as in te res t as pro vi de d b y

law ac cru edth erea fte r, as pe ti ti on er’s u np ai d l iabi li ty for th e Dece m

be r 31 , 20 05 qu art er.) On Ap ril 24 an d M ay

4, 2 00 6, re sp ect iv el y , res po nd en t i ss ue d t o p et it io ne r (1 ) a n ot ic e o f in te ntto lev y with re sp ectto pe ti ti on er’s u np ai d l iabi li ty for the Decem be r 31 , 20 05 qu art er (n ot ic e o f in te ntto lev y with re sp ectto th e Dece m be r 31 , 20 05 qu art er) and(2) a no ti ce o f ta x l ie n wi thres pe ctto th atli ab il it y (no ti ce o f ta x l ie n wi thres pe ctto th e Dece m be r 31 , 20 05 qu art er). Inth e n ot ic e o f in te ntto le vy with res pe ctto th e Dece m be r 31 , 20 05 qu art er, res po nd en t i nd ic at edth atif pe ti ti on er wan te d t o re qu es t an App eal s Off ic e h eari ng reg ard in g t ha t n ot ic e, itha d- 6 -

[* 6] to do so withi n 3 0 d ay s af te r th e d at e o f th atno ti ce (i .e., by May 24, 2 00 6, the 30 th da y aft er Ap ril 24 , 20 06 , th e d at e o n wh ic h re sp on de ntis su edth e n ot ic e o f in te ntto lev y

with re sp ectto th e Dece m be r 31 , 20 05 qu art er). Inth e n ot ic e o f ta x li enwith re sp ectto th e Dece m be r 31 , 20 05 qu art er, res po nd en t i nd ic at edth atif pe ti ti on er wan te d t o re qu es t an App eal s Off ic e h eari ng reg ard in g t ha t n ot ic e, itha d to do so by Jun e 5 , 20 06
. Pet it io ne r di d n otti m el y

subm itto res po nd en t Fo rm 12 15 3, o r an y

ot he r do cu m en t, i n wh ic h i t re qu es te d a n Ap pe al s Off ic e h eari ng reg ard in g t he no ti ce o f in te ntto lev y

with re sp ectto th e Dece m be r 31 , 20 05 qu art er an d t he no ti ce o f ta x li enwith re sp ectto th e Dece m be r 31 , 20 05 qu art er. In st ead , pet it io ne r wai te d
un ti l J un e 1 2 o r 13 , 20 06 , onwhi chto subm itto res po nd en t Fo rm 12 15 3 re ga rd in g th os e n ot ic es (pe ti ti on er’s Jun e 2 00 6 F orm 12 15 3)
. Becaus e p et it io ne r di d n ot

6 ti m el y subm itFo rm

12 15 3, o r an y

ot he r do cu m en t, i n wh ic h i t re qu es te d a n App eal s Off

ic e h eari ng reg ard in g t he no ti ce o f in te ntto lev y with re sp ectto th e Decem be r 31 , 20 05 qu art er an d t he no ti ce o f ta x l ie n wi th res pe ctto th e Dece m be r 31 , 20 05 qu art er, res po nd en t g ran te d p et it io ne r a s o- cal le d e qu iv al en t h eari ng , and

Pet it io ne r’s Ju ne 20 06 Fo rm 12 15 3 i s n otpart o f th e rec or d i n t hi s ca se . 6 Res po nd en t’s tran sc rip t o f acc ou ntforth e qua rte r en de d Dec em be r 31 , 20 05 , sh ows th atpe ti ti on er s ub m it te d t o re sp on de nta “ COLLECTION DUE PROCESS EQUIVALEN T HEARING REQUE ST” o n Jun e 1 2 a nd13 , 20 06
.- 7 -

[* 7] no t an App eal s Off

ic e h eari ng , reg ard in g p et it io ne r’s unpa idli ab il it y forth e Decem be r 31 , 20 05 qu art er. On M arch 30 , 20 07 , th e App eal s Off ic e is su edto pe ti ti on er a d eci si on let te r
co nc ern in g e qu iv al en t h eari ng un de r se ct io n 6 32 0 a nd/o r 63 30 of t he Int ern al Rev enue Co de (de ci si on let te r) wit h re sp ectto pe ti ti on er’s u np ai d l iabi li ty for the Decem be r 31 , 20 05 qu art er. Tha t d eci si on let te r st at edinpe rti ne ntpa rt: You r du e p ro ces s h eari ng reque stwas n otfil edwithi n the ti m e p resc rib edun de r Sec ti on63 20 an d/ or 63 30 . Howev er, y ourece iv eda he ari ng equi va le ntto a du e p ro ces s h eari ng ex cep t tha t the re i s n o rig htto di sp ut e a d eci si on by the App eal s Off ic e in co urt u nd er IR C Sect io ns 63 20 an d/ or

63 30
. As d is cu ss edinm or e d et ai l b el ow, o n J un e 7 , 20 07 , pet it io ne r subm it te d t o
res po nd en t p et it io ne r’s June 7, 2 00 7 F orm 94 23 with re sp ectto , in te r al ia , pet iti on er’s u np ai d l iabi li ty for the Decem be r 31 , 20 05 qu art er. As al so di sc us se d i n
m or e d et ai l b el ow, o n J ul y 31 , 20 07 , pet it io ne r subm it te d t o re sp on de ntpe ti

ti on er’s Jul y

31 , 20 07 Fo rm

94 23 with re sp ectto , in te r al ia , th atli ab il it y . Pet it io ne r fi le d F orm

94 1 fo r th e qua rte r en de d M arch 31 , 20 06 (Mar ch31 , 20 06 qu art er). Pet it io ne r di d n otpa y all of t he Fed eral tax es th atitrep orte d i n t ha t return (p et it io ne r’s unpa idFo rm 94 1 t ax es for

th e March 31 , 20 06 qu art er). Res po nd en t t im el y

ass es se d p et it io ne r’s unpa idFo rm 94 1 t ax es forth e Mar ch31 , 20 06 qu art er, as well as a n a dd it io n t o t ax un de r se ct io n 6 65 1( a)(2 ) an d- 8 -

[* 8] in te res t as pro vi de d b y law fo r th atqu art er. (We sh al l re fer t o a ny suc h
unpa idass es se d am ou nt s wi th res pe ctto th e March 31 , 20 06 qu art er, as well as in te res t as pro vi de d b y

law ac cru edth erea fte r, as pe ti ti on er’s u np ai d l iabi li ty for th e Ma rch 31 , 20 06 qu art er.) On Au gu st4 an d 1 7, 2 00 6, re sp ect iv el y , res po nd en t i ss ue d t o p et it io ne r (1 ) a n ot ic e o f in te ntto lev y with re sp ectto pe ti ti on er’s u np ai d l iabi li ty for the Mar ch31 , 20 06 qu art er (n ot ic e o f in te ntto lev y with re sp ectto th e Ma rch 31 , 20 06 qu art er) a nd(2) a no ti ce o f ta x l ie n wi th res pe ctto th atli ab il ity (no ti ce o f ta x li enwith re sp ectto th e Ma rch 31 , 20 06 qu art er). Inth e n ot ic e o f in te ntto lev y with re sp ectto th e Ma rch 31 , 20 06 qu art er, res po nd en t i nd ic at edth atif p et it io ne r
wan te d t o re qu es t an App eal s Off ic e h eari ng reg ard in g tha t n ot ic e, itha d t o d o s o withi n 3 0 d ay s af

te r th e d at e o f th atno ti ce (i .e., by Sep te m be r 3, 2 00 6, the 30 th da y aft er Au gu st4, 2 00 6, the da te on whi chres po nd en t i ss ue d t he no ti ce o f in te nt to lev y with re sp ectto th e Ma rch 31 , 20 06 qu art er). Inth e n ot ic e o f ta x l ie n wi th
res pe ctto th e Ma rch 31 , 20 06 qu art er, res po nd en t i nd ic at edth atif p et it io ne r
wan te d t o re qu es t an App eal s Off ic e h eari ng reg ard in g tha t n ot ic e, itha d t o d o s o by Sept em

be r 18 , 20 06
. Pet it io ne r fi le d F orm

94 1 fo r th e qua rte r en de d S ep te m be r 30 , 20 06 (Sep

te m be r 30 , 20 06 qu art er). Pet it io ne r di d n otpa y all of t he Fed eral tax es th atit- 9 -

[* 9] rep orte d i n t ha t re tu rn(pe ti ti on er’s u np ai d F orm 94 1 t ax es forth e Sep te m be r 30 , 20 06 qu art er). Res po nd en t t im el y

ass es se d p et it io ne r’s unpa idFo rm 94 1 t ax es forth e Sep te m be r 30 , 20 06 qu art er, as well as i nt eres t as pro vi de d b y law fo r th atqu art er. (We sha ll refe r to an y

su chunpa idass es se d a m ou nt s wi th res pe ctto th e Sep te m be r 30 , 20 06 qu art er, as well as i nt eres t as pro vi de d b y law ac cru edth erea fte r, as pe ti ti on er’s u np ai d l iabi li ty for the Sep te m be r 30 , 20 06 qu art er.) On Ap ril 12 an d M ay

18 , 20 07 , res pe ct iv el y , res po nd en t i ss ue d t o p et it io ne r (1 ) a n ot ic e o f ta x l ie n wi th res pe ctto pe ti ti on er’s u np ai d l iabi li ty for the Sep te m be r 30 , 20 06 qu art er (n ot ic e o f ta x l ie n wi th res pe ctto th e Sep te m be r 30 , 20 06 qu art er) a nd(2) a no ti ce o f in te ntto lev y with re sp ectto , in te r al ia , th atli ab il it y . 7 Inth e n ot ic e o f ta x l ie n wi thres pe ctto th e Sep te m be r 30 , 20 06 qu art er, res po nd en t in di cat edth atif p et it io ne r wan te d t o re qu es t an App eal s Off ic e h eari ng reg ard in g th atno ti ce, i t h adto do so by May 21 , 20 07 . In the no ti ce o f in te ntto lev y with
res pe ctto th e Sep te m

be r 30 , 20 06 qu art er an d p et it io ne r’s ta xabl e y ear 2 00 6,
res po nd en t i nd ic at edth atif p et it io ne r wan te d t o re qu es t an App eal s Off ic e h eari ng As d is cu ss edbe lo w, th e n ot ic e o f in te ntto lev y th atres po nd en t i ss ue d t o 7 pe ti ti on er wi th res pe ctto pe ti ti on er’s u np ai d l iabi li ty for the Sep te m be r 30 , 20 06 qu art er al so pe rta in edto cert ai n a ss es se d a m ou nt s fo r pe ti ti on er’s t ax ab le y ear 20 06 . W e sh al l re fer t o t ha t n ot ic e as th e n ot ic e o f in te ntto lev y with re sp ectto th e Sep te m

be r 30 , 20 06 qu art er an d p et it io ne r’s ta xabl e y ear 2 00 6.- 10 -

[* 10 ] reg ard in g tha t n ot ic e, itha d t o d o s o wi th in 30 da y s af te r th e d at e o f th at
no ti ce (i .e., by Ju ne 17 , 20 07 , th e 3 0t h d ay aft er Ma y

18 , 20 07 , th e d at e o n wh ic h
res po nd en t i ss ue d t he no ti ce o f in te ntto lev y with re sp ectto th e Sep te m be r 30 , 20 06 qu art er an d p et it io ne r’s ta xabl e y ear 2 00 6)
. Pet it io ne r fi le d F orm

94 1 fo r th e qua rte r en de d Dec em be r 31 , 20 06 (Decem

be r 31 , 20 06 qu art er). Pet it io ne r di d n otpa y all of t he Fed eral tax es th atit rep orte d i n t ha t re tu rn(pe ti ti on er’s u np ai d F orm 94 1 t ax es forth e Dece m be r 31 , 20 06 qu art er). Res po nd en t t im el y

ass es se d p et it io ne r’s unpa idFo rm 94 1 t ax es forth e Decem be r 31 , 20 06 qu art er, as well as i nt eres t as pro vi de d b y law fo r th atqu art er. (We sha ll refe r to an y

su chunpa idass es se d a m ou nt s wi th res pe ctto th e Dece m be r 31 , 20 06 qu art er, as well as i nt eres t as pro vi de d b y law ac cru edth erea fte r, as pe ti ti on er’s u np ai d l iabi li ty for the Decem be r 31 , 20 06 qu art er.) On J un e 1 4, 2 00 7, re sp on de ntis su edto pe ti ti on er a n ot ic e o f ta x l ie n wi th
res pe ctto pe ti ti on er’s u np ai d l iabi li ty for the Decem be r 31 , 20 06 qu art er (n ot ic e o f ta x l ie n wi thres pe ctto th e Dece m be r 31 , 20 06 qu art er). In t he no ti ce o f ta x l ie n 8 with re sp ectto th e Dece m be r 31 , 20 06 qu art er, res po nd en t i nd ic at edth atif On Oct ob er 1 9, 2 00 7, af

te r pe ti ti on er fi le d the pe ti ti on co m m en ci ng th is 8 cas e, res po nd en t i ss ue d t o i t a n ot ic e o f in te ntto lev y with re sp ectto pe ti ti on er’s unpa idli ab il it y

forth e Dece m

be r 31 , 20 06 qu art er.- 11 -

[* 11 ] pe ti ti on er wan te d t o re qu es t an App eal s Off ic e h eari ng reg ard in g t ha t n ot ic e, itha d t o d o s o b y

Ju ly 23, 2 00 7. Pet it io ne r fi le d F orm

94 0, Em pl oyer’s Annua l Fe de ral Unem pl oym en t (FUTA) Tax Return (F orm 94 0) , forit s t ax ab le y ear 2 00 6. Pe ti ti on er d idno t p ay al l o f th e Fed eral tax th atitrep orte d i n tha t re tu rn(pe ti ti on er’s u np ai d F orm 94 0 ta x fo r it s t ax ab le y ear 2 00 6)
. Res po nd en t t im el y

ass es se d p et it io ne r’s unpa idFo rm 94 0 t ax forit s t ax ab le y ear 2 00 6, as well as a n a dd it io n t o t ax un de r se ct io n 6 65 1( a)(2 ) an d i nt eres t as pr ov id edby law fo r th aty ear. (We sh al l re fer t o any suc h u np ai d a ss es se d
am ou nt s wi th res pe ctto pe ti ti on er’s t ax ab le y ear 2 00 6, as well as i nt eres t as pr ov id edby law accrue d t he reaf te r, as pe ti ti on er’s unp ai d l iabi li ty for i ts tax ab le y ear 2 00 6.) On M ay 18 an d 2 2, 2 00 7, re sp ect iv el y , res po nd en t i ss ue d t o p et it io ne r (1 ) th e n ot ic e o f in te ntto lev y with re sp ectto th e Sep te m be r 30 , 20 06 qu art er an d pe ti ti on er’s t ax ab le y ear 2 00 6 t ha t p ert ai ne d t o, i nt er al ia , pet it io ne r’s unpa id li ab il it y for it s t ax ab le y ear 2 00 6 an d (2 ) a n ot ic e o f ta x l ie n wi th res pe ctto th at 9 li ab il it y (no ti ce o f ta x l ie n wi th res pe ctto pe ti ti on er’s t ax ab le y ear 2 00 6) . As di sc us se d abo ve , inth e n ot ic e o f in te ntto lev y with re sp ectto th e Sep te m be r 30 , See s up ra n ot e 7
. 9- 12 -

[* 12 ] 20 06 qu art er an d p et it io ne r’s ta xabl e y ear 2 00 6, re sp on de ntin di cat edth atif pe ti ti on er wan te d t o re qu es t an App eal s Off ic e h eari ng reg ard in g t ha t n ot ic e, itha d to do so withi n 3 0 d ay s af te r th e d at e o f th atno ti ce (i .e., by Ju ne 17 , 20 07 , th e 3 0t h da y aft er Ma y

18 , 20 07 , th e d at e o n wh ic h re sp on de ntis su edth e n ot ic e o f in te ntto le vy with res pe ctto th e Sep te m be r 30 , 20 06 qu art er an d p et it io ne r’s ta xabl e y ear 20 06 ). In t he no ti ce o f ta x l ie n wi th res pe ctto pe ti ti on er’s t ax ab le y ear 2 00 6,
res po nd en t i nd ic at edth atif p et it io ne r wan te d t o re qu es t an App eal s Off ic e h eari ng reg ard in g t ha t n ot ic e, itha d t o d o s o b y Ju ne 29 , 20 07
. Pet it io ne r di d n otsubm itto res po nd en t Fo rm 12 15 3, o r an y

othe r do cu m en t, in whi chitreque st edanApp eal s Off ic e h eari ng with re sp ectto (1) pe ti ti on er’s
unpa idli ab il it y

forth e Ma rch31 , 20 06 qu art er, (2 ) pe ti ti on er’s u np ai d l iabi li ty for th e Sep te m

be r 30 , 20 06 qu art er, (3 ) pe ti ti on er’s u np ai d l iabi li ty for the Decem be r 31 , 20 06 qu art er, an d (4 ) pe ti ti on er’s u np ai d l iabi li ty for i ts tax ab le y ear 2 00 6. In st ead , pet it io ne r subm it te d p et it io ne r’s Ju ne 7, 2 00 7 F orm 94 23
. The in stru ct io ns forFo rm 94 23 st at e in pe rti ne ntpa rt: Youm ay ap pe al a Not ic e o f Fed eral Tax Li en , lev y , sei zu re, o r de ni al orterm in at io n o f anin st al lm en t ag reem en t u nd er the se pro cedur es . * * *- 13 -

[* 13 ] Ho w to App ea l I f You Dis ag ree W ith One o f The se Acti on s 1. If youdi sa gr ee wi th th e d eci si on of t he Rev enue Offic er, an d wi sh to ap pe al , y oum

us t fi rs t re qu es t a c on fere nc e with aCo ll ect io n m an ag er. 2. If youdo no t re so lv e y ou r di sa gr eem en t wi thth e Co ll ect io n m an ag er, y oum ay

reque stApp eal s co ns id erat io n b y co m pl et in g F orm 94 23 , Col le ct io n Ap pe al Reque st . 3. Onth e Fo rm

94 23 , che ckth e Co ll ect io n a ct io n( s) y oudi sa gr ee with a ndex pl ai n wh y

y oudi sa gr ee. Youm

us t al so expl ai n your so lu ti on to res ol ve y ou r ta x p ro bl em . THE COLLE CTI ON OFFICE MUST RECEI VE YOUR REQUES T FOR AN APPEAL WI THI N 2 DAYS OF YOUR CONFERENCE W IT H TH E COLLECTI ON MANAGER OR W E WI LL RES UME COLL ECTI ON ACTI ON. * * * * * * * Deci si on on the a ppea l Onc e th e App eal s Off

ic er m ak es a de ci si on ony ou r cas e, th atde ci

si onis bi nd in g o n b ot h youan d t he IRS. Thi s m ean s tha t b ot h you an d t he IRS ar e requi redto acce ptth e d eci si on an d l iv e up t o i ts te rm s. Pet it io ne r pr ov id edth e res po ns es in di cat edto th e fo ll owi ng qu es ti on s i n pe ti ti on er’s Jun e 7 , 20 07 Fo rm 94 23 :- 14 -

[* 14 ] 11 . Ty

pe of Tax (Tax Fo rm) Pay ro ll , For m s 9 40 , 94 1 12 . Tax Pe rio ds

Bei ng App eal ed All Appli ca bl e Ta x Per io ds in cl udi ng , but no t li m ite d to 20 06 an d 2 00 7 13 . Tax Du e
Uncer ta in

* * * * * * * 14 . Plea se Ch eckth e Co ll ect io n Act io n( s) You ’re App eal in g: : Fed eral Tax Li en : Deni al of Ins ta ll m en t Ag reem en t
: Levy or Not ic e o f Lev y 9 Term in at io n o f Ins ta ll m en t Ag reem en t
: Sei zu re * * * * * * * 15 . Plea se ex pl ai n wh y

y oudi sa gr ee wi thth e co ll ect io n a ct io n( s) y ou ch eck edab ov e an d e xp la inho w y ouwou ldres ol ve y ou r ta x p ro bl em . * * * * * * * * * * Tax pa y er h ereb y

ap pe al s t he IRS d eci si on s t o:

• Den y a ta xp ay er-p ro po se d i ns ta ll m en t ag reem en t,

• Cl as si fy

tax pa y er’s i ns ta ll m en t ag reem en t re qu es t as anatt em pt to de la y co ll ect io n (n o wri tt encla ss ifi cat io n h as be enrece iv ed as y et , bu t i s an ti ci pa te d b as edon a rece nttel ep ho ne co nv ers ati on with t he IRS),- 15 -

[* 15 ] • Fi le li en s an d l ev ie s ag ai ns t t ax pa y er fo r an y an d a ll ap pl ic ab le ta x years,

• Exe cu te an d/ oren fo rce l ie ns an d l ev ie s ag ai ns t t ax pa y er fo r an y an d a ll ap pl ic ab le tax y ears ,

• Requi re the fil in g o f a fed eral tax li ento supp ort an y acce pt ed in st al lm en t ag reem en t,

• Den y tax pa y er an y

an d a ll rig ht s m an da te d u nd er a re qu es t fo r an in st al lm en t ag reem en t,

• Mo ve forwardwith c ol le ct io n a ct iv it ie s wh il e kno win g t ha t su chco ll ect io n a ct iv it ie s wi ll ge ne rat e subs ta nt ia ll y les s fu nd s th anfor eg oi ng su chco ll ect io n a ct iv it ie s. Th atis , th e IRS is be tt er o ff, if

itall ows th e sa le of the tax pay er an d/ orall of i ts as se ts to a pr iv at e b uyer rathe r th anth e IRS ’s pro po se d c ol le cti on act iv it ie s, l ie ns an d l ev ie s. Ov eral l co ll ect io n t ot al s wi ll de crea se subs ta nt ia ll y

du e to m as si ve lay-off

s an d t he im

pa ct on th e lo cal eco no m

y an d t ax ba se . This de crea se wil l l ik el y cau se a do m in o e ffec t t o d ecre as e to ta l co ll ect edtax es on a st at e-wi de ba si s. Tax pa y er re sp ect fu ll y

ask s tha t the tax pa y er b e g ran te d s uf fic ie ntti m e to co ns umm at e th e p ro po se d s al e witho utth e im po si ti on of a dd it io na l li en s an d l ev ie s n or

th e ex ecu ti onor e nf

or cem en t o f ex is ti ng li en s an d le vi es . Alth ou gh , th e atta ch edlet te r of in te ntto pu rch as e Cre di tro n in di cat es a cl os in g d at e wit hi n 3 0 d ay s, t ax pay er wo ul d a skforup to fo urm on th s t o a ll ow fo r an y unpr ed ic tabl e is su es an d t o m in im iz e th e adm in is tra ti ve bu rd enof s eek in g app eal s, ag ai n, t o g ran t m or e ti m e, if requi red
. Inth e al te rn at iv e, orinad di ti on , th e ta xp ay er re qu es ts th atth e in st al lm en t ag reem en t re qu es t d at edJu ne 1, 2 00 7 b e g ran te d, u nt il th e sa le is ex ecu te d a ndclo se d. * * * [Rep ro du cedli te ral ly.]- 16 -

[* 16 ] Inpe ti ti on er’s Jun e 7 , 20 07 Fo rm 94 23 , pet it io ne r di d n otreque st , or i n a ny way su gg es t tha t i t wan te d, an App eal s Off ic e h eari ng . On J un e 2 1, 2 00 7, the App eal s Off ic e se ntto pe ti ti on er a l et te r (Ap pe al s Offi ce Jun e 2 1, 2 00 7 l et te r) wit h re sp ectto th e “ Ta x Per io d(s ) Ende d: 09 /2 00 5 12 /2 00 5 0 3/ 20 06 09 /2 00 6 1 2/ 20 06 ”. Inth atlet te r, th e App eal s Off ic e in di cat ed th atitha d
co ns id eredy ou r pr ot es t re ga rd in g t he pro po se d e nf or cem en t ac ti on s by the Co ll ect io n fu nc ti on . A revi ew of th e cas e fi le rev eal edth at Co m pl ia nc e adhe redto all ap pl ic ab le leg al an d p ro cedur al requi rem en ts inco njunc ti on with your co ll ect io n c as e. Inth e App eal s Off

ic e Ju ne 21 , 20 07 let te r, th e App eal s Off ic e rem in de d p et it io ne r th at“ [t]he is su an ce o f th e le vy is t o c ol le ctth e o ut st an di ng ba la nc e due acco un ts th aty ouha ve no t v ol un ta ril y pa id .” Inpe ti ti on er’s Jun e 7 , 20 07 Fo rm 94 23 , pet it io ne r ha d re qu es te d t he App eal s Off

ic e to de la y

for“up to fou r m on th s” res po nd en t’s p ro ceed in g wi th an y
co ll ect io n a ct io ns rel at in g t o p et it io ne r’s res pe ct iv e em pl oym en t t ax li ab il it ie s fo r th e qua rte rs en de d S ep te m be r 30 an d Dec em

be r 31 , 20 05 , andMarc h 3 1, Se pt em be r 30 , andDecem

be r 31 , 20 06 , andit s u ne m pl oym en t t ax li ab il it y

forit s t ax ab le y ear 2 00 6. In th e App eal s Off ic e Ju ne 21 , 20 07 let te r, th e App eal s Off ic e in

-- 17 -

[* 17 ] form edpe ti ti on er tha t i t wo ul d d el ay res po nd en t’s p ro ceed in g wi th any su ch act io ns for30 da y s o nl y . Thatlet te r st at edinpe rti ne ntpa rt: Si nc e y ouare s o c lo se to clo si ng on a sa le of t he bu si ne ss whi chwil l pr ov id e th e fu nd s t o fu ll pa y th e ab ov e ta x p eri od s, Ap pe al s wi ll di rectth e co m

pl ia nc e d iv is io n n otto en fo rce t he lev ie s u nt il 30 da y s fro m th e d at e o f th is let te r. App eal s p art ia ll y su st ai ns th e Co m

pl ia nc e di vi si on . Bas edon a rev ie w of a ll th e fac ts be fo re u s the act io n i s ap pr op ria te bu t Ap pe al s i s af

fo rd in g youan ot he r 30 da y s t o fu ll pay th e ab ov e ta x li ab il it ie s. Th e 3 0 d ay

ti m e fra m e [s ic ] be gi ns onth e d at e o f th is le tt er. On J ul y 25 , 20 07 , a rev enue off

ic er wi th res po nd en t’s co ll ect io n fu nc ti on (rev enue off

ic er) s en t t o p et it io ne r a l ette r. Thatlet te r st at edinpe rti ne ntpa rt: I’ve ca ll edtwi ce an d l eftvo ic e m ai ls each ti m e. I tru sty ou ’ve recei ve d t he m . To co nf irm, Cred it ro n F in an ci al Co rp or at io n MUST fil e th e fo rm 94 1, Em pl oyers Qu art erl y

Tax R eturn, fo r th e cal en da r qu art er en de d Ju ne 30 , 20 07 with m e al on g wi thful l p aym en t o f an y am ou ntno t pr ev io us ly dep os it ed . Fail ur e to co m pl y with t hi s re qu ire m en t WI LL res ul t i n No ti ces of Lev y

be in g i ss ue d t o the tax pa y er’s b an k a nd cu st om ers . On J ul y 31 , 20 07 , pet it io ne r subm it te d t o re sp on de ntpe ti ti on er’s Jul y 31 , 20 07 Fo rm

94 23 . Peti ti on er p ro vi de d t he res po ns es in di cat edto th e fo ll owi ng qu es ti on s i n t ha t fo rm :- 18 -

[* 18 ] 11 . Ty

pe of Tax (Tax Fo rm) EMPLOYME NT 94 1, 9 40 12 . Tax Pe rio ds Bei ng App eal ed 20 06 AND ALL RELEVANT PERIO DS 13 . Tax Du e
APROX. [si c] $1 .5MI L
* * * * * * * 14 . Plea se Ch eckth e Co ll ect io n Act io n( s) You ’re App eal in g: 9 Fed eral Tax Li en : Deni al of Ins ta ll m en t Ag reem en t
: Levy or Not ic e o f Lev y 9 Term in at io n o f Ins ta ll m en t Ag reem en t
: Sei zu re * * * * * * * 15 . Plea se ex pl ai n wh y

y oudi sa gr ee wi thth e co ll ect io n a ct io n( s) y ou ch eck edab ov e an d e xp la inho w y ouwou ldres ol ve y ou r ta x p ro bl em . [L]evy or n ot ic e o f le vy will pro du ce l es s i nc om e to th e IRS th an anou tri gh t s al e o f ta xp ay er. Taxpay er ca n p ro vi de ass ur an ces th ata sa le wil l b e cl os edwithi n 3 0 d ay s. Ho wev er, the se ass ur an ces m us t s at is fy

th e IRS , no t ju stth e ta xp ay er. So , [si c] any do cu m en t tha t the IRS wo ul d d eem su ffi ci en t t o e st ab li sh th e cert ai nt y of t he sal e wil l h el p t ax pa y er an d t he IRS i n thi s re ga rd
. Altho ug h t he sal e was to oc cu r by no w, th e d el ay ha s b een with ta xp ay er’s au di to rs . The au di to rs were ex tre m el y lat e in pre pa rin g “ rev ie wed ” fi na nc ia l s ta te m en ts th atare re qu ire d fo r th e bu y er’s due di li ge nc e. Now tha t the se st at em en ts are re ady , ta xp ay er o nl y

ne ed s an ot he r 30 da y s t o c lo se th e sa le . There is cl os e to fiv e m il li on do ll ars at s ta ke to th e IRS sh ou ldth e sa le fai l. If the lev ie s ar e is su ed , th e sa le fai ls
.- 19 -

[* 19 ] Pl eas e co ns id er ex te nd in g t he ti m e fo r sa le foran ot he r 30 da y s.

* * * Inpe ti ti on er’s Jul y

31 , 20 07 Fo rm

94 23 , pet it io ne r di d n otreque st , or i n a ny way su gg es t tha t i t wan te d, an App eal s Off ic e h eari ng . On Au gu st13 , 20 07 , th e App eal s Off ic e se ntto pe ti ti on er a m em or an du m
en ti tl ed“ APPEALS CASE MEMO RANDUM COLLECTI ON APPEAL PROGRAM DENI AL OF INS TALLME NT AGREEME NT PROPOSED LEVY ACTI ON PROPOSE D SEI Z URE ACTIO N ”. Thatm em or an du m st at ed in pe rti ne ntpa rt: TYPE OF TAX PERIO DS ASSES SED BALANCE 94 1 20 05 09 40 1,9 02 94 1 20 05 12 112 ,35 2 94 1 20 06 03 20 ,18 1 94 1 20 06 09 11 ,91 0 94 1 20 06 12 9,8 42 94 1 20 07 03 329 ,87 2 Bal an ce $8 86 ,05 9.0 0 SUMMARY AND RECOMME NDATIO N The tax pa y er re qu es te d ahe ari ng inreg ardto a de ni al of a n i ns ta ll

m en t ag reem en t, p ro po se d l ev y an d p ro po se d s ei zure ac ti on un de r th e Co ll ect io n Ap pe al Pro gr am (CAP). The tax pa y er i s b ei ng rep res en te d b y Edg ar Dard enrefe rredto as Po wer o f Att orne y

(POA).- 20 -

[* 20 ] The de ni al of t he in st al lm en t ag reem en t was ba se d o n re qu ire m en ts as pr ov id edinth e In te rn al Rev enue Man ua l § 5.1 4 i nd ic at in g t ha t al l t ax returns forwhi chth e ta xp ay er i s re qu ire d t o fi le m us t b e fi le d p rio r to in st al lm en t ag reem en t ap pr ov al . The t ax pa y er m us t b e in co m

pl ia nc e with a ll curren t d ep os it s af te r be in g t ol d t o d o s o. Th e ta xp ay er was no t i n c om

pl ia nc e wit h fi li ng requi rem en ts when th e in st al lm en t ag reem en t was de ni edan d t he tax pa y er i s n otm ak in g c urren t d ep os it s as requi red
. The de ni al of t he in st al lm en t ag reem en t was als o b as edonth e ta xpa y er re qu es ti ng th e ag reem en t t o d el ay co ll ect io n, IR M 5.1 4.3 .2.(1 )(D). The lev y act io n a ndsei zu re ac ti on was p ro po se d b as edon th e ta xpa y er i nc urrin g a dd it io na l l iabi li ty becau se th ey were n otm ak in g ti m el y an d s uf fic ie ntde po si ts . Co ll ect io n’s d eci si on to de ny the tax pa y er’s reque stforanin st al lm en t ag reem en t, the pro po se d l ev y act io n andth e p ro po se d s ei zu re i s su st ai ne d i n Ap pe al s. BACKGRO UND The li ab il it ie s fo r th e 9 41 tax pe rio ds in di cat edab ov e are du e to th e ta xp ay er n otm ak in g t im el y an d s uf fic ie ntfed eral tax de po si ts . The acco un ts were as si gn edto Co ll ect io n. Timely co nt actwas m ad e with t he tax pa y er b y

th e Rev enue Offic er. The Co ll ect io n M an ag er co nc urredwith t he Rev enue Offic er’s de ci si on to de ny the in st al lm en t ag reem en t, p ro po se d l ev y act io n and pr op os edsei zu re. * * * * * * * The App eal s Se tt le m en t Offi cer re cei ve d t he tax pay er’s CAP re qu es t on Aug us t 6 , 20 07
.- 21 -

[* 21 ] DISCUSS IO N AND AN ALYSI S The Taxp ay er’s Po si ti on :

• The Taxp ay er p ro po se d a n i ns ta ll m en t ag reem en t t o c ol le ct io n fo r $2 0,0 00 .00 pe r weekun ti l s uc h t im e th e co m pany is s ol d.

• The tax pa y er i s re qu es ti ng 4 m on th s t o c on su m m at e th e p ro po se d s al e wit ho utth e im po si ti on of a dd it io na l l ev ie s o r li en s. Compli an ce’s Pos iti on :

• Co ll ect io n d en ie d t he in st al lm en t ag reem en t b ecau se itwas de te rm in editwas s ub m it te d t o d el ay co ll ect io n.

• The tax pa y er h adno t fi le d t he Fo rm 94 1 fo r th e ta x p eri od en di ng Ju ne 30 , 20 07 an d t he refo re was no t i n c om pl ia nc e with fil in g re qu ire m en ts as re qu ire d b y th e IRM . The t ax pa y er h as no w fil edth e 9 41 tax return fo r th e ta x p eri oden di ng Ju ne 30 , 20 07 with aba la nc e due of $ 32 9,5 26 .89
.

• The tax pa y er h as a lo ng hi st ory of n on -co m

pl ianc e an d h as in cu rredad di ti on al li ab il it y si nc e th e in st al lm en t ag reem en t reque stwas m ad e.

• The tax pa y er i s n otm ak in g c urren t d ep os it s af te r be in g a dv is ed to do so . Appea ls ’ Deci si on : On Au gu st9, 2 00 7 t he CAP h eari ng was h el d v iatel ep ho ne with t he App eal s Se tt le m en t Offi cer ( SO) an d t he POA. The ta xp ay er was no t in att en da nc e. App eal s d et erm in at io n i s tha t co m pl ia nc e fo ll owe d a ll leg al an d l oc al pr oc edur es an d g ui de li ne s an d t ha t the de ci si on to de ny the in st al lm en t ag reem en t, p ro po sa l o f th e le vy, andth e p ro po se d s ei zu re act io ns are ap pr op ria te .- 22 -

[* 22 ] The c as e was rev ie wedby App eal s fo r ap pr op ria te ne ss ba se d o n l aw, reg ul at io ns , po li cy

an d p ro cedur es co ns id eri ng all th e fac ts an d ci rcu m st an ces pre se nt ed
.

DETERMI NATIO N Appea ls fin ds tha t al l l eg al an d lo ca l pr oc edur es an d g ui del in es w ere f ol lo w ed a nd w ere a ppro pri at e. The a bo ve ac tio ns , deni al of in st al lment a gr eement, pro po se d le vy ac tio n a nd pro po se d se iz ure ar e a ll sus ta in ed i n Appea ls . On Au gu st23 , 20 07 , pet it io ne r fi le d ape ti ti on co m m en ci ng th is cas e. Inth e pe ti ti on , pet it io ne r al le ge d t ha t the pe ti ti onis a “ Pet it io n fo r Red et erm in at io n o f a Defi ci en cy ” an d a“ Pet it io n fo r Lien or Lev y Acti on ”. Pet it io ne r al so all eg edin th e p et it io n t ha t i t d is ag rees with “ th e d et erm in at io n c on ta in edinth e n ot ic e is su ed by the Int ern al Rev enue Serv ic e fo r th e y ear( s) or p eri od (s ) 20 05 AND 20 06 , as
se t fo rth insu chno ti ce d at edJULY 25 , 20 07 ”. The p et it io n s ta te d i n p ert in en t pa rt: TAXPAYER REQUESTS TH AT ALLCOLLECTION ACTIONS CEASE TO ALL OW

TAXPAYER TO CLOSE A SALE, THE COMP ANY COMPLETELY SAT ISFI NG [si c] TAXPAYER’S OUTSTANDING IRS DEBT. TAXPAYER NEE DS UNTIL SEPTEMBER 3 0, 2 00 7 TO CLOSE THE TRANSACTION. T AXPAYER FEELS THAT THE IRS THREATENE D LEVY ACTION IS AN ABUSE OF DISCRETION GIVEN TAXPAYE R’S DOCUMENTED HARDSHIP. IF LEVIES ARE ISSUED, TAX PAYER W ILL NOT MAKE PAYROLL AND O VER 50 0 EM PLOYEES W ILL BE OUT O F W ORK. ALLO W ING THE SALEOF THE COMP ANY TO CLOSE CREATES A W IN-WIN SITUAT ION FOR- 23 -

[* 23 ] THE IRS AND THETAXPAYER. T HERE IS ALSO A QUE STION OF THE EXACT AMOUNT OF THETAX L IABILITY, GIVEN THE CONFUSING PENALT Y AND INTE REST CALCULATIONS. Dis cu ss io n It i s re sp on de nt ’s po si ti onth atwe do no t h av e juri sd ic ti onov er the qu art ers
en de d S ep te m

be r 30 an d Dec em

be r 31 , 20 05 , Marc h 3 1, Se pt em be r 30 , and Decem be r 31 , 20 06 , andpe ti ti on er’s t ax ab le y ear 2 00 6. In supp ort o f th atpo si

ti on , res po nd en t re pr es en ts th atwith re sp ectto no ne of t ho se tax pe rio ds di d
res po nd en t (1 ) is su e to pe ti ti on er a n ot ic e o f de fic ie nc y , (2) is su e to pe ti ti on er a
no ti ce o f de te rm in at io n u nd er s ect io n 6 33 0( d) (1 ), ex cep t fo r th e n ot ic e o f de te rm ina ti on with re sp ectto th e Sep te m be r 30 , 20 05 qu art er, o r (3 ) m ak e an y ot he r de te rm in at io n t ha t wo ul d c on fer juris di ct io n o n u s i f a p et it io n wer e ti m el y fil ed with re sp ectto an y

su chde te rm in at io n. Inth e p et it io n, p et it io ne r al le ge d t ha t i t d is ag rees with “ th e d et erm in at io n
co nt ai ne d i n t he no ti ce i ss ue d b y th e In te rn al Rev enue Serv ic e fo r th e y ear( s) or pe rio d( s) 20 05 AND 20 06 , as s etforthinsu chno ti ce d at edJULY 25 , 20 07 ”. The
on ly doc um en t i n t he reco rdda te d J ul y 25 , 20 07 , is a le tt er t o p et it io ne r fro m on e of res po nd en t’s re ve nu e o ffi cers reg ard in g p et it io ne r’s fai lu re t o fi le Fo rm 94 1 fo r- 24 -

[* 24 ] th e qua rte r en de d J un e 3 0, 2 00 7. We con cl ud e th atth atlet te r was no t, an d di d n otpu rp ort t o b e, a d et erm in at io n u nd er s ect io n 6 33 0( d) (1 ). Inres po ns e to res po nd en t’s re pr es en ta ti on inres po nd en t’s m ot io n t ha t, aft er a d il ig en t s earc h, re sp on de ntco nc lu de d t ha t re sp on de ntdi d n otis su e to pe ti ti on er a n ot ic e o f de fic ie nc y with re sp ectto an y

of t he tax pe rio ds at i ss ue , pe ti ti on er as se rts inpe rti ne ntpa rt i n p et it io ne r’s op po si ti on : Altho ug h R es po nd en t ar gu es th atno st atut ory no ti ces of d efi ci en cy ha ve be ensen t t im el y , evi de nc e o f de fic ie nc y no ti ces are i n R es po nde nt s [s ic ] reco rd s, an d i t i s i m po rta ntth atth e d at es on th e d efi ci en cy no ti ces be ve rif

ie d b efo re a d eci si on is m ad e o n t he m ot io n t o d is

m is s. Pet it io ne r reque st s ad di ti on al ti m e to pro du ce the da te of the no ti ces , or, al te rn at iv el y , to ha ve Res po nd en t p ro du ce ev id en ce o f th e no ti ce d at es if t ha t wo ul d s av e ti m e. Pet it io ne r ap pe ars to be co nt en di ng th atres po nd en t i ss ue d t o i t n ot ic es of de fic ie nc y

with re sp ectto th e res pe ct iv e ta x p eri od s atis su e. W e rejectpe ti

ti on er’s co nt en ti on . Peti ti on er’s u np ai d l iabi li ty for eac h o f th e qua rte rs en de d Sep te m be r 30 an d Dec em

be r 31 , 20 05 , andMarc h 3 1, Se pt em be r 30 , andDecem
be r 31 , 20 06 , con si st s o f th e unp ai d a m ou ntof F ed eral tax es th atpe ti ti on er sh owe d i n i ts Fo rm

94 1 fo r eac h s uc h qua rte r, as well as a ny add it io n t o t ax un de r
se ct io n 6 65 1( a)(2 ) an d i nt eres t as pro vi de d b y law fo r eac h s uc h qua rte r. Non e o f th os e li ab il it ie s ar os e fro m a de fic ie nc y

th atres po nd en t d et erm in edina no ti ce o f de fic ie nc y . Peti ti on er’s u np ai d l iabi li ty for i ts tax ab le y ear 2 00 6 c on si st s o f th e- 25 -

[* 25 ] unpa idam ou ntof F ed eral tax th atpe ti ti on er s ho wedinit s Fo rm 94 0 fo r th at y ear, as well as a ny add it io n t o t ax un de r se ct io n 6 65 1( a)(2 ) an d i nt eres t as pr ov id edby law fo r th aty ear. Th atli ab il it y di d n otari se fro m

a de fic ie nc y

th at
res po nd en t d et erm in edina no ti ce o f de fic ie nc y . Inres po ns e to res po nd en t’s re pr es en ta ti on inres po nd en t’s m ot io n tha t, af te r a d il ig en t s earc h, re sp on de ntco nc lu de d t ha t, ex cep t fo r th e n ot ic e o f de te rm in at io n with re sp ectto th e Sep te m be r 30 , 20 05 qu art er, res po nd en t d idno t i ss ue to pe ti ti on er a n ot ic e o f de te rm in at io n u nd er s ect io n 6 33 0( d) (1 ) with re sp ectto an y of th e ta x p eri od s atis su e, pe ti ti on er as se rts inpe rti ne ntpa rt i n p et it io ne r’s op po si ti on th at
on or abo utJu ne 1, 2 00 7, Pe ti ti on er m ad e a reque stth atRes po nd en t acce ptanin st al lm en t ag reem en t re ga rd in g the 20 05 an d 2 00 6 t ax pe rio ds . This in st al lm en t ag reem en t wo ul d a ll ow Pe ti ti on er t o c on cl ud e a p en di ng sal e o f it s b us in es s o pe rat io ns an d re al est at e. The sa le wou ldco m

pl et el y sat is fy an y ou ts ta nd in g l iabi li ty for the ab ov e an d a ny oth er o ut st an di ng pe rio ds . Res po nd en t s ta te d t o P et it io ne r th atth e reque stwou ldbe reject ed , andin st eadcla ss ifi edas a n a tt em pt to de la y co ll ect io n. Th is de te rm in at io n b y Res po nd en t i s wi th in th e st atut ory pe rio d. [Em

ph as is ad de d.] Pet it io ne r do es no t o th erwi se ex pl ai n t he “ de te rm in at io n b y Res po nd en t” is su edto pe ti ti on er “ withi n t he st atut ory pe rio d” to whi chitis refe rri ng inpe ti

ti on er’s o pp os it io n. Inan y ev en t, o urjuri sd ic ti on un de r se ct io n 6 33 0( d) (1 ) do es
no t d ep en d upo n wh ethe r th e App eal s Off ic e is su eda de te rm in at io n u nd er tha t- 26 -

[* 26 ] sec ti on withi n acert ai n p eri od
. Our jur is di ct io n u nd er s ect io n 6 33 0( d) (1 ) 1 0 de pe nd s upo n t he is su an ce o f a v al idno ti ce o f de te rm in at io n und er tha t s ect io n
an d ati m el y

fil edpe ti ti on . Lun sf

or d v . Commis si on er, 1 17 T.C. 15 9, 1 61 (20 01 ). W e tu rnno w to eachof the tax pe rio ds at i ss ue inord er t o d et erm in e whe th er we h av e juri sd ic ti on ov er ea chof t ho se pe rio ds
. W it h re sp ectto th e Sep te m be r 30 , 20 05 qu art er, res po nd en t co nc ed es , and
we co nc lu de , th aton Aug us t 1 0, 2 00 6, re sp on de ntis su edto pe ti ti on er a n ot ic e o f de te rm in at io n u nd er s ect io n 6 33 0( d) (1 ). Pet it io ne r, ho wev er, d idno t fi le th e pe ti ti on un ti l Au gu st23 , 20 07 . W e co nc lu de th atwe do no t h av e juri sd ic ti on ov er th e Sep te m

be r 30 , 20 05 qu art er. See sec . 63 30 (d )(1 ). W it h re sp ectto th e Dece m be r 31 , 20 05 qu art er, p et it io ne r di d n otti m el y
subm itto res po nd en t Fo rm 12 15 3, o r an y

ot he r do cu m en t, i n wh ic h i t re qu es te d a n App eal s Off

ic e h eari ng reg ard in g t he no ti ce o f ta x l ie n wi th res pe ctto th e Dece m be r 31 , 20 05 qu art er an d t he no ti ce o f in te ntto lev y with re sp ectto th e Dece m be r 31 , 20 05 qu art er. Becaus e p et it io ne r di d n otti m el y reque stanApp eal s Off

ic e 1 1 The re i s n o m an da te d p eri odof t im e wit hi n wh ic h t he App eal s Off ic e m us t 1 0 is su e a n ot ic e o f de te rm in at io n u nd er s ec. 6 33 0( d) (1 ). Sec. 3 01 .63 30 -1 (e)( 3) , Q&A-E9 , Pro ced . & Adm in . Reg s. On Ap ril 24 an d M ay

4, 2 00 6, re sp ect iv el y , res po nd en t i ss ue d t o p et it io ne r 1 1 th e n ot ic e o f in te ntto lev y with re sp ectto th e Dece m be r 31 , 20 05 qu art er an d t he no ti ce o f ta x l ie n wi thres pe ctto th e Dece m be r 31 , 20 05 qu art er. Pet it io ne r di d (co nt in ue d...)- 27 -

[* 27 ] he ari ng with re sp ectto th os e n ot ic es , itwas n oten ti tl edto su cha he ari ng . See s ecs . 63 20 (b )(1 ), 63 30 (b )(1 ); s ecs . 30 1.6 32 0- 1( c)(2 ), Q&A-C7 , 30 1.6 33 0- 1( c)(2 ), Q&A-C7 , Pro ced . & Adm in . Reg s. Re sp on de ntgrant edpe ti ti on er an equi va le nthe ari ng reg ard in g p et it io ne r’s unpa idli ab il it y forth e Dece m

be r 31 , 20 05 qu art er. See sec s. 3 01 .63 20 -1 (i) (1 ), 30 1.6 33 0- 1( i)( 1) , Pro ced . & Adm in
. Reg s. OnMarc h 3 0, 2 00 7, the App eal s Off ic e is su edto pe ti ti on er a d eci si on let te r with re sp ectto th atli ab il it y . See s ecs . 30 1.6 32 0- 1( i)( 1) , 30 1.6 33 0- 1( i)( 1) , Pro ced
. & Admin . Reg s. We con cl ud e th atth atlet te r was no t, an d d idno t p ur po rt t o b e, a de te rm in at io n u nd er s ect io n 6 33 0( d) (1 ). See, e.g ., Moo rh ou s v . Comm is si on er, 11 6 T.C. 2 63 , 27 0 (2 00 1) . W e fu rth er co nc lu de th atwe do no t h av e juri sd ic ti on
ov er the Decem

be r 31 , 20 05 qu art er. W it h re sp ectto th e quarte rs en de d M arch31 , Sep te m be r 30 , andDecem

be r 31 , 20 06 , andpe ti ti on er’s t ax ab le y ear 2 00 6, al th ou gh pe ti ti on er kne w th atFo rm 12 15 3 was th e fo rm

pre sc rib edforreque st in g a n Ap pe al s Off ic e h eari ng , 1 2 (...co nt in ue d) 1 1 no t s ub m itFo rm

12 15 3 wi th res pe ctto th os e n ot ic es un ti l J un e 1 2 o r 13 , 20 06
. See s up ra n ot e 6
. The no ti ce o f in te ntto lev y an d t he no ti ce o f ta x l ie n tha t re sp on de nt 1 2 is su edto pe ti ti on er wi th res pe ctto eachof t he tax pe rio ds at i ss ue in di cat edth at res po nd en t was att ach in g t o e ach su chlet te r, in te r al ia , Form 12 15 3. Se e supr a no te 3. Mo reo ve r, pe ti ti on er h adsubm it te d t ha t fo rm to res po nd en t wi thres pe ctto each of t he qu art ers en de d S ep te m be r 30 an d Dec em

be r 31 , 20 05
.- 28 -

[* 28 ] pe ti ti on er d idno t s ub m itto res po nd en t tha t fo rm , or a ny oth er d oc um en t, i n whi chitreque st edsu cha he ari ng reg ard in g t ho se tax pe rio ds . Ins te ad , onJune 7
an d J ul y 31 , 20 07 , pet it io ne r subm it te d t o re sp on de ntFo rm s 9 42 3 i n wh ic h i t reque st eda he ari ng with t he App eal s Off ic e und er re sp on de nt ’s Col le ct io n App eal s Pr og ram

(CAP Ap pe al s Off

ic e h eari ng ). 1 3 The Co ll ect io n Ap pe al s Pr og ram pro vi de s an adm in is tra ti ve ap pe al for

“ cert ai n c ol le ct io n a ct io ns ” an d the reject io n a ndtermin at io n o f in st al lm en t ag reem en ts . IRM p t. 8 .24 .1.1 .1(1 )-(3 ) (Ma y 27 , 20 04 ). The IR M p oi nt s o utth e di st in ct io n b etweena CAP Ap pe al s Off ic e h eari ng an d a n Ap pe al s Off ic e h eari ng , se e, e.g ., IRM p t. 5 .1.9 .4(1 ) (J an . 1, 2 00 7) , andin di cat es th at“ [t]he tax pa y er h as th e ri gh t t o g o t o c ou rt o n Ap pe al s’ det erm in at io ns un de r CDP b utno t u nd er CAP”, s ee IR M p t. 8 .24 .1.1 .1(5 ). 1 4

On J un e 7 , 20 07 , pet it io ne r subm it te d t o re sp on de ntFo rm 94 23 with 1 3 res pe ctto , in te r al ia , th e qua rte rs en de d M arch31 an d S ep te m be r 30 an d Dec em be r 31 , 20 06 , andit s t ax ab le y ear 2 00 6. OnJu ly 31, 2 00 7, p et it io ne r subm it te d t o res po nd en t an othe r Fo rm 94 23 with re sp ectto , in te r al ia , th os e ta x p eri od s. In te rn al Rev enue Man ua l (I RM) pt . 5.1 .9.4 .1(2 ) (J an . 1, 2 00 7) in di cat edth atFo rm 94 23 was t he form

to be us edto reque sta CAP Ap pe al s Off ic e h eari ng . Co ns is te ntwith IR M p t. 8 .24 .1.1 .1(5 ) (Ma y 27 , 20 04 ), th e in st ru ct io ns for 1 4 Fo rm 94 23 in fo rm edth e ta xp ay er tha t “ [o ]nce the App eal s Off ic er m ak es a de ci si on on y ou r cas e, th atde ci si on is bi nd in g o n b ot h youan d t he IRS. Thi s m ean s tha t b ot h youan d t he IRS ar e requi redto acce ptth e d eci si on an d l iv e up t o it s t erm s.”- 29 -

[* 29 ] Inres po ns e to pe ti ti on er’s Jun e 7 , 20 07 Fo rm 94 23 an d p et it io ne r’s Ju ly 31, 20 07 Fo rm

94 23 , th e App eal s Off

ic e se ntto pe ti ti on er a l et te r da te d J un e 2 1, 2 00 7,
an d am em or an du m

da te d Au gu st13 , 20 07 , th atwas e nt it le d “ APPEALS CASE MEMORANDUM COLL ECTI ON APPEAL PROGRAM DENI AL OF INST ALLMENT AGREEME NT PROPOSED L EVY ACTIO N PROPOSED SEI Z URE ACTIO N ”. W e co nc lu de th atth atlet te r an d t ha t m em or an du m were
no t, an d d idno t p ur

po rt t o b e, de te rm in at io ns un de r se ct io n 6 33 0( d) (1 ). W e fu rth er co nc lu de th atwe do no t h av e juri sd ic ti on ov er the qu art ers en de d M arch 31 , Sep te m

be r 30 , andDecem

be r 31 , 20 06 , andpe ti ti on er’s t ax ab le y ear 2 00 6. W e h av e co ns id eredall of p et it io ne r’s co nt en ti on s, ar gu m en ts , andreque st s th atare n otdi sc us se d h erei n, an d we f in d t he m to be witho utm eri t, i rrel ev an t,
an d/ orm oo t. On the reco rdbe fo re u s, we s ha ll gra ntres po nd en t’s m ot io n. To re fle ctth e fo reg oi ng , An o rd er g ran ti ng res po nd en t’s
m ot io n a s s up pl em en te d a nddi sm is si ng th is
cas e fo r la ckof ju ris di ct io n wi ll be en te red
.