Opinion ID: 613863
Heading Depth: 2
Heading Rank: 1

Heading: Assessment of Taxpayers’ Liabilities

Text: On their 2006 income tax return, the taxpayers claimed withholding credits of approximately $4.7 million. As a result, on May 3, 2010, the IRS issued the taxpayers an income tax refund of approximately $2.9 million. The IRS later determined that the taxpayers’ asserted credits were false and that the refund was issued erroneously based on those false withholding credits. On August 6, 2010, the IRS canceled the refund and made an assessment against the taxpayers in the amount of roughly $5.1 million, consisting of about $4.7 million in taxes and $400,000 in interest. That same day, the IRS issued to the taxpayers a Form 3552 Notice of Tax Due on Federal Tax Return. 2