United States Tax Court Decision for the Week – You be the Judge

IRS Settlement Officer abused her discretion in a Collection Due Process Hearing, Tax Court Says

The United States Tax Court held that an IRS settlement officer deprived an individual of a fair collection due process hearing under sections 6330 and 6320 and found that the settlement officer acted arbitrarily and capriciously in deciding to proceed with a collection action; the court remanded the case to Appeals for a new Collection Due Process Hearing..

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

SCOTT E. CHARNAS,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-153

 

United States Tax Court Decision for the Week – You be the Judge

No IRS Abuse of Discretion by IRS Appeals Office and Couple Penalized for Frivolous Arguments in Collection Challenge

The United States Tax Court upheld the IRS’s determination to sustain a notice of federal tax lien filing against a couple and imposed a $3,500 penalty against them for advancing frivolous arguments, finding that the IRS’s decision to sustain its proposed collection action was proper as a matter of law. Summary Judgment granted.

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

GEORGE H. PATTON AND FELOMINA F. PATTON,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-75

United States Tax Court Decision for the Week – You be the Judge

The United States Tax Court Overturns Levy and finds Abuse of Discretion Due to Appeals Settlement Officer’s Errors

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

The United States Tax Court held that an IRS settlement officer abused his discretion by sustaining a proposed levy against an estate, finding that the settlement officer’s “clearly erroneous view of law and assessment of the facts” was not a harmless error, and that his refusal to meaningfully consider collection alternatives denied the estate a fair hearing.

ESTATE OF MARTHA E. SANFILIPPO, DECEASED,
WILLIAM J. SNYDER, EXECUTOR,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-15

United States Tax Court Decision for the Week – You be the Judge

IRS Abuse of Discretion by Sustaining Levy; Case Remanded to Appeals for a Supplemental  Hearing

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

The United States Tax Court held that the IRS Appeals Office abused its discretion by sustaining a levy when a sculptor refused to enter an installment agreement conditioned on the filing of a notice of tax lien, finding that the appeals officer didn’t balance the need for efficient collection against concern that the collection action be no more intrusive than necessary. The court remanded the case to the IRS Appeals Office for a supplemental collection due process hearing.

JAMES B. BUDISH,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2014-239

United States Tax Court Decision for the Week – You be the Judge

IRS Abuse of Discretion in Collection Due Process Hearing Results in Attorney Fees Award. Taxpayer wins big!

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

The United States Tax Court, in an unpublished order, granted an individual an award of attorney fees and litigation costs after determining that an IRS appeals officer abused his discretion in her collection due process hearing and held that the IRS could not proceed with collection of her unpaid taxes.

JURATE ANTIOCO,
Petitioner(s),
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

United States Tax Court Decision for the Week – You be the Judge

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

The United States Tax Court imposed a $10,000 penalty under Internal Revenue Code section 6673(a)(1) against a taxpayer who litigated his income tax liability in the tax court and federal courts, holding that he was previously warned against making frivolous arguments; the court also granted the IRS summary judgment in the collection action.

ALVIN SHELDON KANOFSKY,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,  Respondent

T.C. Memo. 2014-153

 

 

United States Tax Court Decision for the Week – You be the Judge

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

The United States Tax Court dismissed an individual’s challenge to the IRS’s proposed levy actions for two tax years, finding that the court lacked jurisdiction, and granted the IRS summary judgment regarding a levy for a third tax year, finding that she had failed to respond to the motion and there was no abuse of discretion by the IRS.

JANET MCCULLAR,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2014-150

United States Tax Court Decision for the Week – You be the Judge

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

The United States Tax Court held that the IRS didn’t abuse its discretion by refusing to rescind a notice of intent to levy to collect trust fund recovery penalties while an individual’s installment agreement request was pending; the court remanded the case to the Appeals Office to clarify its basis for a down payment as a condition of the installment agreement.

Renald Eichler sent the IRS a proposed partial-payment installment agreement for trust fund recovery penalties the IRS assessed against him. However, before the IRS addressed the proposed installment agreement, it sent him a notice of intent to levy regarding the penalties. Eichler requested a collection due process hearing and also asked that the IRS rescind the notice of levy because the installment agreement was pending. The IRS proceeded with the CDP hearing and proposed an installment agreement that required a down payment. When Eichler rejected the agreement because of economic hardship, the IRS sustained the proposed levy. Eichler petitioned the Tax Court for review, arguing that the IRS was precluded by section 6331(k)(2) from issuing the notice of levy while the installment agreement was pending.

Tax Court Judge Michael B. Thornton wrote that section 6331(k)(2), which prohibits the IRS from making a levy while an offer for an installment agreement is pending, didn’t preclude issuance of the notice. Thornton found support for the court’s conclusion in reg. section 301.6331-4(b)(1), which provides that the IRS may take action other than a levy to protect the government’s interest. The court held that there was no abuse of discretion in the IRS’s refusal to rescind the notice of intent to levy.

However, Thornton remanded the case to the IRS Appeals Office to clarify the appeals officer’s basis for requiring a down payment as a condition of the installment agreement. The court found that there was no indication in the record that the appeals officer considered issues regarding Eichler’s and his wife’s ages and their limited financial resources or the claim that funds in a bank account had been loaned to them. The court stated that any new collection alternatives should be considered on remand.

RENALD EICHLER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent

 143 T.C. No. 2

United States Tax Court Decision for the Week – You be the Judge

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

The United States Tax Court held that the IRS didn’t abuse its discretion by sustaining a notice of federal tax lien filing against a couple, but it did abuse its discretion by failing to request financial information from the couple to consider collection alternatives; the court remanded the case to the Appeals Office to consider their request for an installment plan.

JOSE L. URIBE AND MARIA E. URIBE,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2014-116

United States Tax Court Decision for the Week – You be the Judge

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

The United StatesTax Court, imposing a frivolous argument penalty, found no abuse of discretion by the IRS in sustaining a levy against a couple and held that the IRS satisfied its obligation to provide them with records of assessment; the couple’s attorney must show cause why he shouldn’t be required to pay excessive costs to the IRS under section 6673(a)(2).

LEONARD L. BEST AND EVELYN R. BEST,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2014-72