Of Bertoldo

The Judge with a Heart, STJ Robt N Armen, is befuddled. IRS is fighting the Section 7430 costs-and-fees that Legal Aid of SD CA has asserted.

The San Diegans brought off the win for Tung Dang & Hieu Pham Dang, Docket No. 21100-17, filed 11/1/18. For the details, see my blogpost “The Tree of Bertoldo,” 6/4/18.

IRS may have missed a winning argument, but I didn’t tell, and I’m sure none of my readers did, as IRS eschewed a Rule 161 or Rule 162 vacation. Anyway, they conceded that Tung & Hieu were substantially justified.

Howbeit, now IRS claims a CDP isn’t an “administrative proceeding” within the meaning of Section 7430 unless a deficiency is involved.

“The term ‘administrative proceeding’ means any procedure or other action before the Internal Revenue Service.“ 26 USC §7430(c)(5).

But IRS promulgated Reg. 1.7430-3(b), which, by a draught from the regulatory ipse dixiecup, somehow makes Congress’ use of “any” not mean “any,” taking collections outside Section 7430.

IRS, y’all get a Taishoff “Oh Please! First Class with bar.”

But STJ Armen is willing to let IRS explain why the San Diegans’ challenge to the reg should fail.

Oh, and by the way, forget the TXMODA transcripts, “given that they are based largely on unfamiliar computer codes, abbreviations, and symbols.” Order, at p. 1. Try the Form 4340.

And if IRS objects to the San Diegans’ billing, let them state whether it’s the rate or the hours or both they don’t like.

So fill up with Chevron, and if it causes you pain, try the Mayo Clinic.