In Uncategorized on 05/09/2017 at 20:50

Today’s designated hitter from STJ Daniel A. (“Yuda”) Guy revives the old cliché. In the case of Steven Schwartz & Wendy Schwartz, Docket No. 4354-16L, filed 5/9/17, it really pours.

First, Steve & Wendy late-filed their return for the year at issue, reported hefty tax due but didn’t pay, either with the return or after notice and demand from IRS. And IRS threw in late-filing, nonpayment, and no estimateds chops.

Steve & Wendy don’t pay, the NITL follows, and Steve & Wendy drop a 12153 into the Appeals hopper. They give Appeals a Form 433-A but with no back-ups, and a Form 656. Appeals bounces their CDP, but during all the back-and-forthing, IRS gives Steve & Wendy a SNOD.

IRS claims their self-reported tax was $7K low. But they can have a further late filing  and negligence chops.

Steve & Wendy don’t petition the SNOD.

To begin with STJ Yuda says the $7K is off the table, along with the chops thereto appurtenant. No petition from SNOD, no jurisdiction.

As for the chops arising from the unpaid self-reported tax, while Steve & Wendy said they wanted to dispute those in their 12153, they had a chance to dispute those at Appeals, but didn’t.

“Petitioners stated in their petition that they wish to dispute penalties for the [year at issue]. The record shows, however, that petitioners failed to place those penalties in dispute during the administrative hearing. Consequently, they are precluded from disputing their liability for penalties in this proceeding. See Thompson v. Commissioner, 140 T.C. 173, 178 (2013) (‘A taxpayer is precluded from disputing the underlying liability if it was not properly raised in the CDP hearing.’); sec. 301.6330-1(f)(2), Q&A-F3, Proced. & Admin. Regs.” Order, at p. 4.

As for the OIC, by not producing back-ups for their Form 433-A, that’s off the table.

IRS can levy, but only for the self-reported and chops.



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