In Uncategorized on 06/09/2015 at 23:44

Misquoting Shakespeare, Sivatharan Natkunanathan craves the bond he should have gotten, but didn’t, in the eponymous 2015 T. C. Memo. 106, filed 6/8/15. Judge Lauber admonishes Siv that, without a bond, IRS has a free-fire zone to lien and levy after Siv gets unhorsed in Tax Court, despite his numerous (and unavailing) appeals.

Siv loses in Tax Court on the SNOD for his various deficiencies, appeals to Ninth Circuit, but fares no better; Ninth Circuit affirms Tax Court.

In the meantime, IRS gives Siv a NITL. Siv files Form 12153, provides no collection alternative but claims “appeal pending.”

Siv is playing the Supremes variation on the appeal-and-stall gambit, petitioning for leave to file cert petition out of time. This, of course, is an old-time rounder manoeuvre. In fact, a lady I blogged sent me her petition to the Supremes to reconsider her own petition; I didn’t bother reading it. Her chances of success were slightly less than her chances of outrunning American Pharaoh barefoot in a five-furlong breeze.

Needless to say, Siv doesn’t bother with a bond. See Section 7485(a).

Appeals gives Siv a NOD, from which he petitions timely.

Judge Lauber: “The only question is whether petitioner at his CDP hearing raised any issue that has merit.

“The answer to that question is clearly ‘No.’ As his only basis for requesting a CDP hearing, petitioner stated that his 2003 tax liability was ‘on appeal in the United States Supreme Court.’ That statement was false. Petitioner did not file a timely petition for certiorari, and the Supreme Court denied his motions for leave to petition out of time.” 2015 T. C. Memo. 106, at pp. 6-7.

And Judge Lauber gives us the timetable: “When a taxpayer timely petitions this Court in response to a notice of deficiency, the IRS generally may not proceed to assess or collect the tax ‘until the decision of the Tax Court has become final.’ Sec. 6213(a). Where (as here) a decision of our Court has been affirmed on appeal, the decision becomes final ‘[u]pon the expiration of the time allowed for filing a petition for certiorari.’ Sec. 7481(a)(2)(A).” 2015 T. C. Memo. 106, at p. 7.

Siv’s first shot at the Supremes was nine months late, so the order of Ninth Circuit affirming Tax Court was long since final.

Anyway, Section 7485 (a)(1) is clear: “Section 7485 provides that, ‘[n]otwithstanding any provision of law imposing restrictions on the assessment and collection of deficiencies, * * * [appellate] review under section 7483 shall not operate as a stay of assessment or collection of any portion of * * * the deficiency determined by the Tax Court’ unless the taxpayer files a timely notice of appeal and, as relevant here, also posts a bond as provided in section 7485(a)(1). Petitioner did not post such a bond. If no bond is posted, the IRS may properly assess taxes and initiate collection during the pendency of the appeal.” 2015 T. C. Memo. 106, at pp. 7-8. (Citations omitted).

No bond, no stay, and Appeals is sustained if they give a NOD affirming IRS’s lien or levy.

So if you mean to appeal, crave the bond.

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