No, not a successor to Harry Hope’s infamous dive, the venue of the 1946 Eugene O’Neill classic. This is the story of David L. (“Davy”) Jones, 2017 T. C. Sum. Op. 75, filed 9/13/17.

Davy missed a year’s tax return, so IRS gave him a SFR at no extra charge, and when Davy didn’t pay, hit him with a SNOD.

Did Davy pay? No. Did he petition? No. So IRS gave him a NITL at no additional charge. Davy does send in a Form 12153. Did Davy challenge liability? Yes. Did Davy propose a collection alternative? No.

Well, CDP hearing one gets rescheduled when Davy claims he didn’t get the SO’s letter giving him a chance to file the missing return.  CDP hearing two gets rescheduled for bad weather, and then rescheduled again because the SO “inadvertently misplaced petitioner’s case file.” 2017 T. C. Sum. Op. 75, at p. 4.

So the SO sent another letter setting up a further adjourned CDP hearing, but Davy neither came on the phone nor asked for a further adjournment.

The SO then sent Davy a “last chance” letter. This said, “If you don’t have anything to tell me I’ll go by the file and decide.”

Davy claims he never got the “last chance” letter, although IRS claims it was sent to the last address Davy gave them..

So the SO upholds the NITL, and Davy petitions.

“Petitioner disagrees with the SO’s determination because he contends that he did not receive the ‘last chance’ letter.  Once a taxpayer has been given a reasonable opportunity for a CDP hearing but has failed to avail himself of the opportunity, the SO may proceed in making a determination by reviewing the case file.  Oropeza v. Commissioner, T.C. Memo. 2008-94, aff’d, 402 F. App’x 221 (9th Cir. 2010); Taylor v. Commissioner, T.C. Memo. 2004-25, aff’d, 130 F. App’x 934 (9th Cir. 2005).” 2017 T. C. Sum. Op. 75, at p. 8.

Davy had two chances before the “last chance” letter to propose alternatives. Judge Ruwe says that’s enough.

Takeaway- The next-to-last chance may in fact be your last chance.