In Uncategorized on 07/30/2020 at 16:17

Judge James S (“Big Jim”) Halpern has troubles with SO PS (Name omitted). SO PS may have been a trifle hasty when she signed off on the Section 6702 frivolity chops portion of the NTFL IRS gave Sheila Ann Smith, Docket No. 1312-16L, filed 7/30/20. So Judge Big Jim makes a designated hitter out of it, and ships Sheila Ann and IRS back to Appeals.

“Also stipulated, but not among the documents stipulated to constitute the administrative record in this case, are six Forms 8278, Assessment and Abatement of Miscellaneous Civil Penalties. Respondent has assessed six section 6702(a) penalties of $5,000 each with respect to six purported income tax returns received from petitioner: two returns for each of 2008 and 2010 and one for each of 2009, and 2011. The six Forms 8278 are: one for each of the two 2008 and two 2010 purported returns and one for each of the 2009 and 2011 purported returns.” Order, at p. 2.

IRS puts in the six 8278s as proof of Boss Hossery.


“On three of the forms, the Originator blocks are signed but the signatures (similar) are indecipherable, and the originator is not otherwise identified. On five of the six forms, a printed name appears in the Manager block and the form is signed with that name in the Reviewer block. On one form, the name in the Manager block differs from the signature in the Reviewer block.” Order, at p. 3.

As the Forms 8278 never got into the administrative record, they prove nothing.

“The Forms 8278 are not among the documents stipulated to constitute the administrative record in this case, and, because our abuse-of-discretion review is limited to the administrative record, we do not take them into account in determining whether SO PS verified section 6751(b)(1) compliance. Moreover, even were the Forms 8278 among the documents that constitute the administrative record, those forms alone are insufficient to verify section 6751(b)(1) compliance.

“The penalty approval requirement in section 6751(b)(1) is particular, allowing assessment of a penalty only if the initial determination of the assessment is personally approved in writing by either ‘the immediate supervisor’ of the individual making the initial determination or a designated higher level official. The Secretary has not designated any higher level official for purposes of section 6751(b). Consequently, the statute requires the written approval of the immediate supervisor of the person making the initial determination. We have held that a Form 8278 is adequate to satisfy the written approval requirement when the form was prepared by the examining agent and signed by the immediate supervisor before assessment of the penalty.” Order, at p. 3 (Citations omitted). (Emphasis by the Court).

And while there may be a Manager and a Reviewer in on the tackle, IRM pt. Managerial Approval for Penalty Assessments (11-25-2011) (applicable to the Forms 8278) lists conditions for entry in the Boss Hoss stakes. An IRS employee’s immediate supervisor is the one who does the performance evaluation and approves the employee’s leave requests. Generally.

But the 8278s fall short. So back to Appeals they, IRS, and Sheila Ann must go.

Judge Big Jim cites the case of Dean Matty Vigon. All y’all doubtless remember Dean Matty. What, no? Then check out my blogpost “Crafty – Akin to the Weasel,” 7/24/17.

And to save you the trouble of looking up yet another of my blogposts, here’s the story of the robosigners. When the subprime mortgage debacle exploded and foreclosures rained from the skies, we dirt lawyers saw a flurry of ‘robosigners,’ junior clerks given titles above their pay grades who signed affidavits and pleadings at the rate of ten a minute, with flailing notaries at their elbows stamping their nights away. None had any idea what they were signing or to what they were swearing. Eventually these got torn up in court, as the pro bonos and the defendants’ wolfpack deposed the signers.










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