Attorney-at-Law

EXHAUSTION

In Uncategorized on 04/24/2019 at 15:32

The title of this blogpost more aptly describes the feelings of Judge Morrison, after grappling with Pamela E. Veal-Hill, Docket No. 1517-17, filed 4/24/19.

But the impediment to Pam E.’s quest for Section 7430 admins & legals is Section 7430(b)(1). Did Pam E. exhaust her administrative remedies before filing her timely petition?

No doubt Pam E. substantially prevailed. She got two years’ worth of tax and chops down from $84K aggregate to less than $600. Judge Morrison doesn’t address whether or not IRS was substantially justified.

Pam E.’s problem is that, although the 30-day letters with the proposed changes to tax due said she could go to Appeals if she disagreed, she waited for the SNODs and then petitioned.

Judge Morrison asked Pam E. to clarify. She filed a reply, attaching a letter she sent to IRS asking for an Appeals conference, after she had stiped out her Tax Court case.

“The IRS argued that Veal-Hill’s failure to file a written protest with the IRS in response to the…30-day letters meant that Veal-Hill had failed to exhaust her administrative remedies. Veal-Hill’s…court paper does not address argument directly. Instead it suggests that Veal-Hill’s…”Protest and Request for Appeals Conference” is an attempt to seek her administrative remedies for the adjustments proposed in the 30-day letter. Such a suggestion is wrong. There are no longer any administrative remedies available to Veal-Hill. Her case before this Court involved the issues of the correct amount of deficiencies and penalties for [years at issue]. These issues have been resolved by the…stipulation of settled issues. There is nothing further for the administrative agency to remedy. We therefore hold that Veal-Hill did not exhaust the administrative remedies available to her within the IRS. This precludes her from any recovery of litigation costs. See sec. 7430(b)(1). Therefore, we will deny Veal-Hill’s…motion, which seeks litigation costs under section 7430(a)(2).” Order, at p. 4.

Pam E. also wanted $896K in damages for intentional infliction of emotional harm. No jurisdiction in Tax Court.

Takeaway- Exhaust your remedies or exhaust your wallet.

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