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

United States Tax Court Upholds Levy Action, Rejection of Installment Agreement, and Finds No IRS Abuse of Discretion

The United States Tax Court held that an IRS settlement officer in the Appeals Office didn’t abuse his discretion by rejecting a couple’s proposed installment agreement and sustaining a levy action against them because they had sufficient equity in their assets to pay the taxes, they failed to offer acceptable collection alternatives, and they had a history of noncompliance.

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.

RANDY TILLERY AND RACHEL BENATOR,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-170

 

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

The Statute of Limitations Period Bars IRS’s Lien Collection Efforts

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 Appeals Office IRS settlement officer improperly sustained a notice of federal tax lien to recover a trust fund recovery penalty against an individual, finding that collection was barred because the 10-year limitations period in Code section 6502 had expired and was not tolled by the individual taxpayer’s frequent trips outside the United States.

KIM REINHART,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent.

T.C. Memo. 2014-218

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 Tax Court held that the IRS didn’t abuse its discretion in sustaining a proposed levy action against a taxpayer for trust fund recovery penalties under section 6672 because the settlement officer determined that the taxpayer had a reasonable collection potential far in excess of the amount offered in compromise.

KENNETH M. MOORE,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2013-278

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 Tax Court, granting the IRS summary judgment, held that an IRS settlement officer didn’t abuse his discretion in determining an individual’s reasonable collection potential, rejecting collection alternatives, and sustaining a proposed levy to collect the individual’s unpaid trust fund recovery penalties.

CHARLES M. GLOSSOP,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2013-208

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 Tax Court held that a company’s sole shareholder and officer was liable for the company’s unpaid employment taxes and sustained the IRS’s determinations to proceed with lien and levy actions to collect trust fund recovery penalties assessed against her, finding no abuse of discretion by the IRS in making its determinations.

TERRIE ANN HELLMAN,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2013-190

U.S. District Court Decision for the Week – You be the Judge

A recent U.S. District Court 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.

A U.S. District Court refused to grant the government summary judgment for trust fund recovery penalties assessed against the owner and president of companies that failed to pay over their withholding and employment taxes, finding that based on the facts of the case a reasonable jury might conclude that he wasn’t liable for the penalties.

TIMOTHY J. HUDAK, ET UX.
Plaintiffs,
v.
THE UNITED STATES OF AMERICA
Defendant.

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 Tax Court, sustaining late-filing and accuracy-related penalties, held that an individual wasn’t a real estate professional and losses from his rental activity were subject to the passive activity limitations of section 469, finding that he failed to show that he spent more time on his rental activity than on other income-producing activities.

GUILLERMO MERINO, JR., AND LISA MERINO,
Petitioners
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 Tax Court held that an individual wasn’t entitled to deduct as alimony a lump sum payment to his former wife made under a mediation agreement, finding that under Florida contract law the obligation to make the payment would not have terminated on either party’s death and therefore did not meet the requirement of section 71(b)(1)(D).

JOHN D. NYE AND ROSE M. NYE,
Petitioners
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 Tax Court, finding no abuse of discretion by the IRS in sustaining a proposed levy, held that an individual deliberately failed to claim a certified letter informing him of the proposed assessment of trust fund recovery penalties against him and, thus, couldn’t challenge the liability in his collection due process hearing.

CESARE GIAQUINTO, Petitioner
                   v.
COMMISSIONER OF INTERNAL REVENUE, Respondent

T.C. Memo. 2013-150 June 12, 2013