In Uncategorized on 11/13/2014 at 17:53

No, not a tale of the exposition of sacred scriptures. This is The Judge Who Writes Like a Human Being, a/k/a The Great Dissenter, s/a/k/a The Implacable, Indefatigable Foe of the Partitive Genitive, Mark V. Holmes, expounding on the difference between a deficiency (statutory notice of which is the “ticket to Tax Court”) and a liability (which mostly isn’t).

The designated hitter is Charles Williams a.k.a. C. Williams, DDS and Mary Williams, Docket No. 7614-13, filed 11/13/14.

Doc Charlie and Ms Mary have settled with IRS, but they have a problem crafting the decision document.

Doc Charlie claims he gave at the office for part of what he owes, when Social Security docked him for some money.

Judge Holmes strides into the breach, with his usual down-to-earth people-talk, rather than taxbabble.

“The dispute is a good illustration of the tricky distinction between a deficiency and a liability. A deficiency is the difference between the tax owed and the tax shown on a taxpayer’s return, plus any amount previously assessed or collected without assessment as a deficiency, and less any rebates. IRC § 6211(a). A tax liability is the amount a taxpayer actually owes. IRC § 26(b). (Someone whose return is perfect but encloses a bad check has no deficiency but has a liability. Somebody who overwithholds but makes a small mistake on his return may have a deficiency but no liability.)

“The Commissioner’s view is that our jurisdiction is generally limited to determining whether a taxpayer has a deficiency, and in this case he agrees that petitioners do not have a deficiency. See IRC § 6214(a). We generally do not have jurisdiction to restrain or review credits or refunds made by the Commissioner.” Order, at pp. 1-2.

But Doc Charlie is afraid IRS may try to collect twice.

So IRS will check government records to see if Doc Charlie is right.

Howbeit, motions for entry of decision due New Year’s Eve.

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