In Uncategorized on 10/17/2017 at 15:50

I sang those for many years, and one of my nearest and dearest is joining the chorus.

But at least we weren’t and aren’t sharing the plight of John Moriarty and Cassandra Moriarty, 2017 T. C. Memo. 204, filed 10/17/17.

John and Cass were serial nonfilers, with four (count ‘em, four) of the unfiled years at issue. So IRS bestowed the usual SFR for one of the years, whereupon John and Cass coughed up all four. Without payment. IRS then doubled down with additions for late filing and late payment, plus NITLs and NFTLs.

John and Cass sought a CDP, whereat they were afforded the chance to contest their self-reported liabilities. John and Cass produced only one year’s amended return, but it showed they owed $23K more than they said they owed before.

The usual IA was applied for, but John and Cass wanted their younger children’s religious school payments deducted from their ability-to-pay calculation.

That’s OK, but.

Here’s Judge Lauber to tell you the “but.”

“Under the IRM, secondary school and college tuition is a ‘conditional expense that may in some circumstances be allowed in evaluating a collection alternative.  But for such expenses to be allowable, the taxpayer must establish that he will discharge his entire unpaid tax liability within six years.  See IRM Exh. 5.15.1-1 Q&A 10 (Nov. 17, 2014) (specifying that parochial school expenses are allowed in evaluating a proposed installment agreement only ‘if the taxpayer can pay the liability plus accruals within six years”).’ 2017 T. C. Memo. 204, at pp. 13-14. (Citation omitted.)

John’s and Cass’ offer would only pay half in six.

No go.

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