It Is Over

I take my text from Jimmy Webb’s 1965 hit about Phoenix, Albuquerque, and Oklahoma, and love gone bad. And my version of the song is true whether the petition is from a SNOD or a NOD. I dare say most Tax Court cases are lost before they ever get there.

First, the NOD. Alberta L. Reynolds, Docket No. 6371-19SL, filed 7/2/21* had two (count ’em, two) returns bounced for years subsequent to the years at issue. In the first year at issue, she self-reported but didn’t pay, and in the second, she claimed no tax due but got bounced for a math error, showing tax due.

Her 433-A showed ability to pay, and she never provided a signed copy of one of her missing returns. So Alberta lost at Appeals, but petitioned got a remand to consider a collection alternative and whether she was CNC.

Judge Paris describes what happened at the supplemental CDP: “Petitioner did not provide SO Salinas with updated financial documents or information, nor did she provide signed copies of her 2016 and 2018 tax returns. Petitioner stated that she was unaware that she needed to provide updated financial information, despite the Court’s [remand] Order ordering petitioner to provide updated information and SO S’… letter requesting updated information and tax returns. Petitioner informed SO S that her financial information had not changed other than a decrease in rent. SO S informed petitioner that she cannot enter into a payment plan until her delinquent tax returns are filed. SO S also noted that if petitioner’s financial information had not changed, she still showed an ability to pay the underlying liabilities.” Order, at pp. 3-4.

Alberta’s petition from the supplemental CDP again raised her underlying tax liability. That’s OK, even if self-reported. But you have to raise underlying tax liability at the CDP; the supplemental CDP, like a remand from an appellate court, is limited to what the remanding court says to consider, nothing else.

Summary J to IRS.

Next is Theresa Adams, Deceased, Docket No. 10602-19, filed 7/2/21**, but it isn’t anything to do with the late Theresa. Whatever her problems, the petition was tossed, since its wasn’t signed by the late Theresa before she became the late Theresa, or anyone with authority to act for her before or after.

However, Delores L. Knight moves to vacate the toss, although she loses because no SNOD or NOD was issued to her. Possibly this is one of the spousal cases, where the deficiency is attributable only to one spouse. Howbeit, Delores L. wants a refund.

“Delores Knight filed a Motion To Change or Correct Caption. However, further review indicates that Ms. Knight’s motion appears to be more akin to a Motion To Vacate. In the motion, Ms. Knight asserts that this case should be a refund case for her tax years 2010 through 2014. To the extent that Ms. Knight is seeking a refund of taxes paid, taxpayers generally have two years to file a lawsuit following disallowance of a claim for refund. See sec. 6532(a)(1). However, the Tax Court is not the proper forum in which to do so. A taxpayer may seek judicial remedy for wrongful denial of refund claims – i.e., a refund suit in compliance with I.R.C. section 6532(a)(1) and 7422(a), either in the U.S. Court of Federal Claims pursuant to 28 U.S.C. section 1491(a)(1), or in Federal district court pursuant to 28 U.S.C. section1346(a)(1). None of those statutes confer refund jurisdiction on this Court.” Order, at p. 1.

Tax Court can order refunds only in a deficiency review, when it turns out the petitioner overpaid. No stand-alones.

It might be well for some enterprising person to compile  current statistics on how many Tax Court cases are actually won in US Tax Court.

*Alberta L Reynolds 6271-19L 7 2 21

**Theresa Adams 10602-19 7 2 21