Attorney-at-Law

RESTITUTION? NOT INTERESTED

In Uncategorized on 12/22/2017 at 16:39

IRS got zip from Zip, so Debra Ray doesn’t have to pay. That’s the good news from Judge Buch, who seems to think the United States Attorney for the Central District of Illinois is a District Attorney (a District Attorney is a State official, Judge), telling Deb that she doesn’t owe interest on her civil restitution, in Debra J. Ray, Docket No. 12358-16L, filed 12/22/17.

Deb took a Section 7206 false return fall, and USDCCDIL hit her for $7K in restitution, with a $250 credit for sums previously paid. Deb paid up timely, and the US Attorney filed a satisfaction of judgment.

IRS came looking for interest, got the entire payment wrongly applied, straightened it out (more or less), but still wanted interest. After working with collections, Deb went to Appeals. There, the AO said no managerial or ministerial delay, so no abatement.

Deb petitions, but in the meantime the Philosopher-Judge, Judge Lauber, hands down the case of Zipora Klein. For the skinny on that one, see my blogpost “IRS Gets Zip,” 10/3/17.

First, scope of review. “Here, Ms. Ray has not had a prior opportunity to dispute the amount of restitution that remains due, as such we review de novo. Although Ms. Ray has continuously argued that she paid the full amount of the restitution, neither the appeals officer nor the settlement officer addressed the issue. We will address it here.” Order, at p. 5.

And the satisfaction of judgment from the miscalled DA estops IRS from claiming any part of the restitution wasn’t paid.

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