This was a favorite delaying tactic a couple years (hi, Judge Holmes) ago, but it seemed to lose favor. However, today Judge Lauber has a player before him, and the gambit is declined, forcefully.

Here’s how the gambit is played. I’ll cite the dates, because they are important.

“Five years ago, we determined a deficiency and an addition to tax for petitioner’s 2003 taxable year. Petitioner appealed that decision to the Court of Appeals for the Ninth Circuit, which affirmed. Petitioner then filed several motions in the U.S. Supreme Court seeking permission to file a petition for writ of certiorari out of time; each motion was denied. Undeterred, petitioner attempted to file numerous other documents with the Supreme Court, which led the Court to bar him from making additional filings. Indeed, in his motion for reconsideration of our opinion, which we denied on July 14, 2015, petitioner persists in arguing that the Supreme Court erred in determining that his petitions for certiorari were untimely.” Sivatharan Natkunanathan, Docket No. 10332-14L, filed 7/20/15, at p. 2. (Citations omitted.)

Siv is up on a NOD from a CDP. He’s also a candidate for rounderhood, and his prospects along that line look very good. Siv might even be a runner in the Section 6673 sweepstakes.

Now Siv may try to appeal denial of the reconsideration from the CDP NOD. But IRS has a gambit worth two of those.

“…respondent filed a Motion to Permit Levy. The effect of granting this Motion would be to allow the IRS to levy immediately in an effort to collect petitioner’s 2003 tax liability, without waiting for the expiration of the time for petitioner to appeal this Court’s decision and seek certiorari. We ordered petitioner to respond to the IRS motion by July 29, 2015. Petitioner has filed no response.

“A taxpayer’s request for a CDP hearing automatically suspends the levy process ‘for the period during which such hearing, and appeals therein, are pending.’ Sec. 6330(e)(1). However, section 6330(e)(2) provides that this suspension ‘shall not apply to a levy action while an appeal is pending if the underlying tax liability is not at issue in the appeal and the court determines that the Secretary has shown good cause not to suspend the levy.’” Order, at p. 1.

Well, Siv hasn’t contested liability. And good cause?

“The IRS seeks to use its levy power to collect a tax liability that petitioner incurred 12 years ago. In light of petitioner’s litigiousness and the frivolous nature of many of his filings, the IRS should not be forced to wait until he has pursued what may be many more months of fruitless litigation. Petitioner has ‘used the collection review procedure to espouse frivolous and groundless arguments and otherwise needlessly delay collection.’” Order, at p. 2 (Citation omitted).

Checkmate, Siv.