To This Situation

I am reminded of G. B. Shaw’s story of the celebrated swearer who, seeing his worldly goods fall off the back of a wagon and roll down a hill, said “I find I cannot do justice to this situation”, by today’s designated hitter from STJ Lewis (“Sweet Lew the Spelling Champ”) Carluzzo.

The case involves a nonassessible penalty (thus no SNOD necessary). It’s the Section 6699 $125-per-shareholder of a Sub S when the required return is not filed. And the S Corp owes the penalty.

Appeals denied the S Corp’s request for abatement, and told them to pay, then apply for a refund, and sue if they don’t get it.

And I never had to deal with a Section 6699 penalty either.

The S Corp petitions, but of course the letter from Appeals isn’t a SNOD, because Section 6699(d) expressly excluded the penalty from deficiency procedures.

And it isn’t a NOD, because IRS hasn’t issued a NFTL or a notice of intent to levy. STJ Lew says the letter doesn’t say anything about liens or levies or what to do if there is one.

So the S Corp can wait for the NFTL or the notice of intent to levy and ask for a CDP. And if they’re unhappy, then petition Tax Court.

Simple, right? Nothing here that, in Baedecker’s immortal words, “need long detain the tourist.”

The S Corp is out.

But the S Corp’s name creates the situation to which I cannot, in a blog meant for family reading, do justice: Inland Empire Colon & Rectal Surgeons, Docket No.3624-13S, filed 5/23/14.