My long-suffering readers will remember Lucy Gabey, Navajo tribal elder and sole support of her clan-nephew, who starred in my blogpost “Losing My Religion”, 1/17/13; Lucy has a disciple, George Thompson, who features in 140 T. C. 4, a full-dress opinion filed 3/4/13.

Geo files a Section 6330 petition after Appeals bounces his proposed partial pay installment agreement because he included his tithe to his Church (with a capital “C”) in his necessary living expenses. Geo claims this violates the First Amendment to the Constitution and the Religious Freedom Restoration Act of 1993 (RFRA”), Pub. L. No. 103-141, sec. 3, 107 Stat. 1488 (current version at 42 U.S.C. sec. 2000bb-1(a) and (b) (2006)), just like Lucy G.

Geo is a pious fellow. Judge Ruwe explains: “Petitioner has been a member of the Church of Jesus Christ of Latter-Day Saints (Church) his entire life and has regularly contributed 10% of his monthly income to the Church. Petitioner is actively involved in the Church and holds a position as a shift coordinator in the Church’s Manhattan Temple. Additionally, petitioner is a stake scouting coordinator for the Church and is responsible for overseeing six scout troops in different congregations in New Jersey. Petitioner was not compensated by the Church for his shift coordinator or stake scouting coordinator responsibilities.” 140 T. C. 4, at p. 3.

Geo’s present problems are his TFRPs for the business entity he controls through a trust with his wife. He’s got $150K in current TFRPs, plus a previously defaulted installment agreement for personal taxes for a bunch of years and previous TFRPs, amounting to $731K, for a total of about $888K. Apparently rendering unto Caesar isn’t part of Geo’s religion.

Based on what Geo offered in his partial pay installment plan ($3K per month), it would take 24 years for Geo to pay off what he owes. Appeals offered Geo $8K per month, which Geo rejected, even though it would take nine years for Geo to pay off at that rate.

Tax Court doesn’t rewrite installment plans. If underlying liability is not at issue (and it isn’t), “arbitrary, capricious or contrary to law” is the rule.

Judge Ruwe: “The Commissioner has created guidelines for settlement officers to follow in determining the terms of a partial payment installment agreement for a taxpayer who cannot fully pay his liability but can pay some of it.

“In evaluating a taxpayer’s ability to pay, the Commissioner classifies a taxpayer’s expenses into two categories: (1) necessary expenses and (2) conditional expenses.” 140 T. C. 4, at p. 12.

If a taxpayer requests a partial payment installment agreement, which is what Geo wants, taxpayer is only allowed what expenses s/he needs to live, per the IRS regional guidelines.

Judge Ruwe again: “This issue involves whether petitioner’s asserted religious obligation to tithe can trump his obligation to pay substantial amounts of delinquent penalties and taxes. Petitioner does not meet the requirements of sec. 6159(c), which if met would require respondent to enter into a full payment installment agreement in a reasonably prompt manner. Petitioner introduced evidence, including a biblical passage from the Old Testament, to support his position. See Malachi 3:8-10. This brings to mind another biblical passage suggesting an answer to this type of dilemma: “Render therefore to Caesar the things that are Caesar’s, and to God the things that are God’s.” Matthew 22:21. However, even this formulation presents the dilemma of determining which things fall into the two respective categories. While we may be incapable of determining what belongs to God, we believe that we can, and must, decide what is Caesar’s. Therefore, we will consider this issue using the latter approach based on existing procedures and precedents.” 140 T. C. 4, at pp. 12-13.

Geo fails the test. His tithing may be necessary for his employment, but as he isn’t being paid that doesn’t count, notwithstanding a letter from his Bishop (with a capital “B”), which though admitted into evidence without objection is not deemed to be an official Church (with a capital “C”) position.

And as for his spiritual well-being, Tax Court doesn’t go there, and there’s copious Supreme Court learning on that score.

Finally, our friend “least intrusive” under RFRA. Geo is a long-time nonpayer, everyone agrees that collection of taxes is necessary, and Tax Court decides that Geo and his Church (with a capital “C”) cannot trump governmental functions.

So Geo, say hello to Lucy.