“I Sing the Bounce Electronic.” I may sing the bounce electronic, but Hector Manuel Lopez, Docket No. 17719-21L, filed 6/14/24, certainly doesn’t. Told by the SO during his CDP to file some overdue 1040s, Hector claims he did. The SO checked by whatever means were available to her, couldn’t find them, and bounced Hector’s CDP.

Judge Nega tells the story.

“On the Petition, petitioner states that the 2020 tax returns ‘were electronically filed but they were rejected.’ The record does not reflect any attempt to communicate the attempted filing of a 2020 return to SO W during the CDP proceeding. An uncommunicated, unsuccessful filing of a tax return is not, by itself, enough to qualify as timely compliance with SO W’s request that petitioner file his Form 1040 for tax year 2020. We find that SO W did not abuse her discretion in concluding the CDP proceeding and issuing the notice of determination under this timeframe.” Order, at p. 6. (Name and citations omitted).

I see Tax Court is hosting a celebratory outreach to honor Nina E. (“The Big O”) Olson, the long-time honcho of Taxpayer Advocate Service. Might be well if her successor could tell IRS to work out a way to verify bounced filings and let Appeals know that at least petitioner tried to comply. Pro ses don’t know to do that.

Buy Out, Not Sell Out. Every closely-held entity needs a succession plan. The time it takes to settle an estate, or even empower an adm’r/ex’r/persrep to act, in many jurisdictions runs the Ukraine War a close second. Been there, done that (the estate, I mean).

But the plan has to benefit the entity, not the heirs/successors of the succeeded. Smuggling valuable equity to the widow(er)/kiddies at cut-rate prices falls foul of Section 2703. Thus Judge Elizabeth A. (“Tex”) Copeland instructs Estate of Douglas W. Anderson, Deceased, Roger L. Anderson and Beth Anderson, Co-Executors, Docket No. 37600-21, filed 6/14/24.

The co-ex’rs claim the terms of the buyout of the late Doug’s shares in the family C Corp was FMV. Except the kiddies sued the co-ex’rs in PA court, claiming they were swindled, the redemption price of the late Doug’s shares effecting a windfall for the other beneficiaries. They settled out, but the settlement agreement never got to IRS nor to Judge Tex Copeland. Taishoff, an old cynic, isn’t surprised; probably would have sunk their IRS case.

Anyway, the terms of the buyout (appraisal of shares at any time up to 24 months prior to exit), the various appraisals with different amounts, plus the lawsuit (with missing settlement agreement), require a trial. No summary J for the Estate.

Taishoff, an old cynic, says watch this case settle out.