In Uncategorized on 11/30/2017 at 16:10

Marjorie E. Davis, Petitioner and Lee A. Davis, Intervenor, Docket No. 3719-16, filed 11/30/17, starts with Marjorie standing alone. She wants Section 6015(e)(1) detachment, apparently from Lee, who doesn’t object, for her tax liabilities for nine (count ‘em, nine) different tax years.

IRS held Marjorie in notwithstanding, and gave her a NOD. So Marjorie headed for Winston-Salem, NC, to plead her case before Judge Ashford. She’s due to go to trial next week, but IRS has moved to dismiss Marjorie’s petition.

Why? Valid NOD, timely petition. Except.

“…an Order discharging the debts of petitioner, including the income tax liabilities for the years at issue, was entered by the United States Bankruptcy Court for the Western District of North Carolina pursuant to 11 U.S.C. section 727. Furthermore, according to respondent, respondent has adjusted petitioner’s IRS account so that she has zero tax, interest, and penalties due for the years at issue. Accordingly, respondent asserts, there is no outstanding liability owed by petitioner for each of the years at issue; there is neither an underpayment nor a deficiency remaining for which this Court may provide relief under I.R.C. section 6015.” Order, at p. 1.

So why isn’t Marjorie walking out with head held high?

Marjorie wants any Tax Court decision to overturn the denial of her stand-aloneness.

No can do, says Judge Ashford.

“It is undisputed that petitioner received a discharge of her income tax liabilities for the years at issue by the Bankruptcy Court and that her IRS account reflects that she has no outstanding tax liabilities for those years. Petitioner thus has been ‘relieved’ of liability for the years at issue and as a result, there is no remaining case or controversy to sustain this Court’s jurisdiction over her case. Indeed, petitioner’s situation is no different than the situation in a lien and levy action under I.R.C. sections 6230(c) and 6330(d) where, after commencing such an action in this Court, the underlying liability is paid in full and the IRS has released the applicable lien and no longer needs, nor intends, to pursue collection by levy; there is no further relief that we are able to grant under I.R.C. sections 6320 and 6330 and the case must be dismissed as moot.” Order, at p. 2.

Can’t be relieved when discharged.

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