James M. Thomas v. United States

CHOY, Senior Circuit Judge:

On May 17, 1983, appellant, James M. Thomas, was assessed a $500 penalty for filing a frivolous 1982 income tax return, See 26 U.S.C. § 6702. Thomas did not receive the notice and demand for payment of the penalty until June 28, 1983, apparently because the Internal Revenue Service (IRS) had used an incorrect zip code. However, the zip code used was that given by Thomas on his 1982 tax return.

To contest the penalty assessment, Thomas filed on July 11, 1983 a 15% partial payment of the penalty and a claim for refund as required by 26 U.S.C. § 6703(c)(1). After the…