I don’t know which, if any, of my readers has seen Luis-Manuel Miranda’s masterpiece, but the leitmotif sure echoes in Haridas Karunkaran, Docket No. 21878-21L, filed 10/28/22. IRS gave Hari a NFTL for two (count ’em, two) nonconsecutive years. Year One comes off an unpetitioned SNOD, Year Two from unpaid self-reporteds.

Hari petitioned the NFTL, but never filed Form 433-A or Form 656 (with deposit and fee) for the OIC he wanted. His claim is that the retirement plan draw he took was a loan which he paid back.

STJ Eunkyong (“N’Yawk”) Choi deduces that the retirement draw issue relates to Year One, as it was probably an adjustment in the SNOD.

Of course, Year One is DOA. An unpetitioned SNOD is a chance to contest that is thrown away.

“We presume that petitioner refers to taxable year [One] in referencing money he received from his retirement account because taxable year [One] is the year for which petitioner received a Notice of Deficiency. The underlying liability for taxable year [Two] stems from the amount petitioner himself reported he owed in his [Year Two] income tax return, not from a Notice of Deficiency. It therefore follows that that the retirement payment was an adjustment to income included in the Notice of Deficiency for taxable year [One]. Petitioner was precluded from raising at the CDP hearing the issue of liability for taxable year [One] and is likewise precluded from raising the issue before this Court. See Secs. 6330(c)(2)(B), 6320(c).” Order, at p. 5.

And Hari doesn’t do so good with Year Two.

“Petitioner does not appear to challenge the underlying liability for taxable year [Two], but nevertheless is precluded from doing so. Petitioner was not statutorily precluded from challenging the underlying liability for taxable year [Two] during the CDP proceedings. See Shaddix v. Commissioner, T.C. Memo. 2022-11 (a taxpayer has not had a prior opportunity to dispute the underlying liability where the tax owed was self-reported, the taxpayer’s return was not audited, and taxpayer was not issued a notice of deficiency). However, because petitioner did not raise the issue of the underlying liability for taxable year [Two] during the CDP proceedings, he may not now raise the issue before this Court.” Order, at p. 5.

For the Shaddix story, see my blogpost “A  Bad Day for Appeals,” 2/28/22.

Oh, and btw, Hari didn’t file at all for three (count ’em, three) subsequent years, which doesn’t help his application for an OIC, or to lift the lien.

Even worse is Bey Newton Wilson d.b.a. Chedrick Adrekis Neal, Docket No. 28362-21P, filed 10/28/22. Bey responds to the passport yank, and Judge Mary Ann (S. E. C. = “She Eschews Cognomens”) Cohen is not amused.

IRS moves to toss for failure to state a claim, and Bey responds.

“As set forth in respondent’s Motion to Dismiss, the Petition contains frivolous, misguided, irrelevant, and non-justiciable claims. Lacking is any allegation that would show that the certification was erroneous. Petitioner’s Objection to the Motion to Dismiss is based on the erroneous arguments in the Motion for Default Judgment and in a supporting affidavit that repeats frivolous claims. Petitioner still does not identify any factual or legal basis for an action under section 7545; considering the total lack of merit in petitioner’s filings, we conclude that there is no error to be adjudicated. It would be an imposition on respondent and on the Court to require an answer, to detail the many errors in petitioner’s arguments, or otherwise to allow this action to proceed.” Order, at pp. 1-2.

No “somber reasoning and copious citation of precedent” from Judge S. E. C.

So, petitioner, take your cue from Luis-Manuel and the man on the Tenspot: Don’t throw away your shot.