Today Judge James S (“Big Jim”) Halpern allows that, when you’re down and out, IRS can still levy. American Limousines, Inc., 2021 T. C. Memo. 36, filed 3/24/21, offers a $2K per month IA for its $1.17 million FICA/FUTA/ITW liabilities.

Except, even allowing its own figures, it’s $900 in the hole every month. Of course, that includes the principal payments on the new cars it bought before it started paying the taxes it owed. Reminds me of Will Rogers’ famous Depression-era statement: “We own the distinction of being the only nation in the history of the world that ever went to the poorhouse in an automobile.”

Anyway, since the Limousine types can’t pay by their own figures, and won’t pay per IRS’ (leaving out the principal payments on the new cars aforesaid, IRS reckons the Limousines could pay $22K per month), looks like the Limousines are going broke, so no IA.

The Limousines are game, trying for CNC, but give that game away.

“On brief, petitioner argues: ‘[It] is compliant with its current tax obligations and has substantial assets.’ The latter claim, alone, would seemingly disqualify it from currently not collectible status. SO D thought that the corporation was on its way to insolvency and could not pay the $2,000 monthly installments it had proposed and that it was in the best interests of the Government for collection by levy or otherwise to proceed. Petitioner’s claim on brief, unsupported by any citation of the record, that it is ‘optimistic about its prospects’ is insufficient to raise a question in our mind that SO D abused her discretion in determining not to classify petitioner’s past due account as currently not collectible. Her decision was neither arbitrary nor capricious or without a sound basis in fact and law.” 2021 T. C. Memo. 36, at pp. 15-16. (Name omitted).

When claiming you’re down and out, don’t talk about how much assets you’ve got.

Finally, says Judge Big Jim, it isn’t the role of us taxpayers to bail out failing businesses. 2021 T. C. Memo. 36, at p. 16.