In Uncategorized on 08/04/2021 at 15:20
Like the human players in Jaques’ soliloquy, the CDP plays many parts. It can take the form of a phoneathon, a tete-a-tete, or a correspondence volley. Thus Judge Ashford teaches us and James D. Sullivan, Docket No. 11738-20L, filed 8/4/21.
James is a frivolite, playing the SE gambit: “The IRC is only applicable in DC and US Territories for those born in  US Territory, who work for the National Government, or are US  Resident Aliens. At all times relevant to this inquiry, the IRC did not apply to me. I was born in one of the 50 states and thus not subject to the territorial jurisdiction of DC and US Territories. I did not work for, or receive income from, the National Government in any capacity, and was not a US Person (a US Taxpayer). I am not one described in IRC 6331(a) as a federal employee, officer or or [sic] elected official. Thus, I received no ‘taxable income’; the levy is invalid; and the NOIL [i.e., the levy notice] must be rescinded.” Order, at p. 3, footnote 4.
James got a SNOD for the $370K in deficiencies and chops, and timely petitioned, except he didn’t pay the sixty Georges or file a proper amended petition, so he got tossed four years ago. When he got the NFTL, he went to Appeals.
There’s argy-bargy about whether James got some letters from the SO, and there’s also some phone-tag, but James chose to respond to everything in writing (frivolities and attempts to litigate the deficiencies included).
Judge Ashford: “Petitioner also asserts that he never received a (telephonic) CDP hearing. However, the record reflects that petitioner’s primary method of communication during the CDP process was through mailed correspondence. AO R attempted to call petitioner several times and had been corresponding with petitioner via mail because that was the way he communicated with her. She explained in her letters to him why he could not challenge his underlying liabilities and, by his own admission, he was not seeking a collection alternative. These communications with petitioner collectively constituted his CDP hearing; he thus received all the process that was due to him. See sec. 301.6330-1(d)(2) Q&A-D6, Proced. & Admin. Regs. (‘A CDP hearing may, but is not required to, consist of a face-to-face meeting, one or more written or oral communications between an Appeals officer or employee and the taxpayer or the taxpayer’s representative, or some combination thereof.’)….” Order, at p. 6. (Citation and name omitted).
Takeaway- A CDP can be a couple letters (hi, Judge Holmes).


In Uncategorized on 08/04/2021 at 13:30

Readers may recall my blogpost “18F? WTF,” 7 /9/21. I received a reply to my letter in paper format yesterday, unsigned, although the name and title of Tax Court’s general counsel was typed on the letter. I had requested a reply by e-mail, so I might cut-and-paste the reply in its entirety, unaltered into this blogpost.

I do not intend to type a copy of this document, with its voluminous footnotes.

I have promised, however, both the addressee and my readers that the full document will be posted. I will therefore scan the document and insert it in a subsequent blogpost at no distant date.

See below. My comments will follow at no distant date.




In Uncategorized on 08/03/2021 at 17:25

I learned this fact three-quarters through the last century of the last millennium, and it’s stayed with me. Today I offer for your reading pleasure and enlightenment Jerry R. Abraham and Debra J. Abraham, 2021 T.  C. Memo. 97, filed 8/3/21, as told by Judge Patrick J (“Scholar Pat”) Urda. That’s Jerry R. Abraham, Esq.

Jerry and Debra have four (count ’em, four) years’ worth of partially unpaid taxes, plus failure to pay tax and failure to pay estimateds add-ons, which don’t need Boss Hossery, 2021 T. C. Memo 97, at p. 12, footnote 6. IRS hits them with a NFTL, Jerry and Debra riposte with an OIC of $50K to settle a $204K liability. This gets bounced, and Jerry and Debra petition.

Jerry claims the SO at Appeals should have allowed the $2900 per month for their childrens religious education (they had ten, count ’em, ten children, and claimed the Code was biased against large families; “…they supported four of their children (ages 16, 18, 21, and 23), who lived with them.” 2021 T. C. Memo. 97, at p. 4. The SO allows two of the kids, but cuts those two non-minors whom Jerry says are ” underemployed or unemployed.” 2021 T. C. Memo. 97, at p. 8.

Jerry wanted to wild-card in a year for which he had neither SNOD nor NOD, but that gets dumped for want of jurisdiction.

The real fight is RCP. Appeals says Jerry can pay in full in the ten-year window.

They assert that the offer specialist’s financial analysis incorrectly disallowed monthly religious education expenses of $2,932 for their dependent daughters in violation of the Religious Freedom Restoration Act of 1993, Pub. L. No. 103-141, 107 Stat. 1488. The Abrahams further argue that the financial analysis incorrectly included as assets $61,075 ‘set aside for taxes and IRA contributions.’ Finally, they contend that the financial analysis incorrectly computed the RCP by multiplying the monthly disposable income by 33 months rather than 12 months.” 2021 T. C. Memo. 97, at pp. 14-15.

Scholar Pat says “So what?”

“Assuming, arguendo, that the Abrahams are correct in each regard, we nonetheless will uphold the settlement officer’s decision to reject the Abrahams’ OIC. We have previously explained that ‘even if the settlement officer made errors in calculating * * * [the taxpayer’s] RCP, we will uphold his decision when the taxpayer’s offer is far less than the correct RCP.” 2021 T. C. Memo. 97, at p. 15. (Citations omitted).

Scholar Pat runs the numbers, gives Jerry his claimed amounts, and still Jerry is offering one-sixth of what he owes, and can pay.

Jerry’s claim that he might file bankruptcy doesn’t help.

“In their response to the motion for summary judgment the Abrahams also contend that the settlement officer abused her discretion by not performing a bankruptcy analysis, as purportedly required by IRM pt. (Aug. 18, 2017), in response to Mr. Abraham’s statement at the CDP hearing that he ‘may file bankruptcy.’ The IRM ‘does not have the force of law and does not confer rights on taxpayers.’ In any event, IRM pt. states that ‘[s]hould the taxpayer state an intent to file bankruptcy’, the settlement officer should ‘make a general analysis of collectibility and the liabilities that would be discharged.’ As explained at length, such an analysis had been performed by the offer specialist and adopted by the settlement officer, and that analysis demonstrated that the Abrahams could fully pay their outstanding liabilities.” 2021 T. C. Memo. 97, at pp. 15-16, footnote 7. (Citation omitted).

Finally, that Jerry cashed out his gov’t retirement twenty-five years ago, so he wouldn’t get a pension, isn’t a special circumstance.