In Uncategorized on 10/31/2012 at 18:56

Loren G. Rice, as Trustee of what looks like a self-settled trust, wants IRS to stay away and mail her a timely NFTL, but she gets neither from Judge Wells in Loren G. Rice Trust, Loren Georgette Rice, Trustee, 2012 T. C. Memo. 301, filed 10/31/12, as Tax Court comes back on stream after the Sandy-induced layoff.

Loren claimed her trust had a $90K refund coming and got the check, but IRS determined an overstatement of withholding and gave Loren a Form 3552 Notice of Tax Due, hand-delivered to her at her place of employment, and on the same day filed a NFTL. Loren didn’t get her five-day notice; that didn’t show up for two weeks.

Loren claims the NFTL is invalid because she didn’t get the five-day notice mandated by Section 6320. Judge Wells: “‘The validity and priority of a NFTL is not conditioned on notification to the taxpayer pursuant to section 6320. Therefore, the failure to notify the taxpayer concerning the filing of a NFTL does not affect the validity or priority of the NFTL.’ See sec. 301.6320-1(a)(2), Q&A-A12, Proced. & Admin. Regs. Ms. Rice has not challenged the validity of this regulation. Accordingly, we conclude that respondent’s failure to provide notice within the five-day period after filing the NFTL does not affect its validity.” 2012 T. C. Memo. 301, at p. 11. Maybe she should have; or maybe, with $90K on the table, she should have hired a lawyer. See my blogposts “Hire A Lawyer”, 8/13/12, and “Heavy Weather – for Weatherly”, 8/26/11.

But Loren grouses about the visitation from the revenue agent to drop off the Form 3552 Notice of Tax Due at her place of employment. She claims Section 6304(a)(2) prohibits IRS from coming to her workplace if her employer objects.

True, but IRS has to know that visits to the taxpayer’s workplace are out of bounds. Judge Wells: “There is no evidence that Ms. Rice provided respondent [IRS] with notice not to visit her at work or that her employer prohibits such visits. Accordingly, the revenue agent’s decision to deliver the Form 3552 to Ms. Rice at her place of employment was consistent with both section 6304(a) and section 6303(a), which states that a notice and demand for payment may be delivered to the taxpayer’s usual place of business.” 2012 T. C. Memo. 301, at p. 11.

So let IRS know they can’t come knockin’, or be prepared for them to come to you.

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