In Uncategorized on 12/02/2022 at 18:47

Judge Courtney D (“CD”) Jones, confronted with an arithmetical barrage in Jacqueline Denise Ford & David Lindsay Ford, Docket No. 29172-21L, filed 12/2/22, seeks refuge in a remand to Appeals. She finds it, in a failure by the hard-pressed SO to accord appropriate attention to Jacquie’s return to the office from enforced teletubbying.

In calculating RCP, Judge CD Jones finds SO P (name omitted) should have considered proffered bank statements, pay stubs, and expense statements showing pre-pandemic parking expenses, Order, at p. 10. Parking at the office is necessary for production of income.

SO P also failed to consider personal loans taken out by Jacquie & Dave, although repaying the 401(k) loan Jacquie took out doesn’t make the cut for OIC because necessity not shown.

“However, the same cannot be said regarding the personal loans from Lending Club and Bay Country. The record clearly reflects that both COIC and SO P considered the inclusion of the Fords’ 401(k) loan, but there is scant evidence that the Fords’ personal loans were considered. The record contains one reference to the consideration of the personal loans, wherein the COIC case history states: ‘Other Secured Debt: 401-k loan and personal loans: $1,782 listed and disallowed. Not allowable expenses.’ There is no associated discussion or reasoning following this statement, and it does not appear as if the two personal loans were ever considered by SO P. All other references to the ‘secured debt’ category include a specific mention of the Fords’ 401(k) loan, but do not include any reference to or discussion of either of the Fords’ personal loans.” Order, at p. 12.

This is an IRS motion for summary J sustaining the NOD affirming a NFTL, so Jacquie & Dave get the benefit of every doubt.

There’s an interesting procedural point. Jacquie & Dave contest seven (count ’em, seven) years covered by the NFTL and NOD, but their OIC includes an additional year, for which no collection action has been taken.

“The Fords have failed to present any evidence showing that the IRS issued a notice that would provide this Court with jurisdiction to review the Commissioner’s collection activities relating to [out year], as is their burden. See Abraham v. Commissioner, T.C. Memo. 2021-97, at *10. However, the Court does have jurisdiction to review a settlement officer’s rejection of an OIC that encompasses liabilities for both CDP years and non-CDP years. See, e.g., Flynn v. Commissioner T.C. Memo. 2022-5, at *7 (citing Sullivan v. Commissioner, T.C. Memo. 2009-4, 2009 WL 20979, at *8–9).

“Accordingly, this Court has jurisdiction to review the IRS’s collection activities for taxable years [1 through 7] and the settlement officer’s rejection of the OIC that encompasses both CDP and non-CDP years. However, this Court does not have jurisdiction to review a claim relating to the Commissioner’s collection activities for [out year], and any such claim is dismissed for lack of jurisdiction. See §§6320(c), 6330(d)(1); see also Alt. Pac. Mgmt. Grp., LLC v. Commissioner, 152 T.C. 330, 333 (2019).” Order, at pp. 5-6.

For Abraham, see my blogpost “Lawyers Can’t Add – Part Deux,” 8/3/21; for Flynn, see my blogpost “Accustomed Standard of Living,” 2/3/22; and for Atl. Pac. Mgmt., see my blogpost “The Taxpayer Bill of Goods – Part Deux,” 6/20/19.

When you check out the arithmetical back-and-forth, Taishoff says SO P did a good job.

Of course, Jacquie’s & Dave’s trusty attorneys also did a good job protecting their clients. Their firm is a well-known whiteshoe that donates a great deal pro bono time and effort (hi, Judge Holmes) as calendar call commandos and CPE/CLE providers.

And, purely coincidentally, their firm’s name is also Jones.





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