Nothing Else Matters

It doesn’t matter whether Ty turned over the information on his profit-sharing plan. It doesn’t matter if the SO was “hostile, irate, [and] yelling” and “not qualified to be impartial and honest in this case.” It certainly doesn’t matter that a thoroughly accurate Reasonable Collection Potential cannot be calculated.

For Judge Christian N. (“Speedy”) Weiler, all that matters for Tyrone Dietz and Toni Dietz, T. C. Memo. 2023-69, filed 6/13/23, is that the RCP exceeds the OIC.

Their equity in their residence was large enough, however calculated, to scupper the OIC.

“Our role is not to redetermine the RCP of the taxpayers and whether it is 100% accurate as determined by the COIC unit. See Gustashaw v. Commissioner, T.C. Memo. 2018-215, at *23 (finding that a ‘[d]etermination of [a taxpayer’s] exact RCP would be a meaningless exercise’ when the taxpayer’s RCP far exceeds the OIC (quoting Estate of Duncan v. Commissioner, T.C. Memo. 2016-204, at *22 n.5, aff’d, 890 F.3d 192 (5th Cir. 2018))). Rather our role is to review the actions of Appeals for abuse of discretion and determine whether the SO’s actions were arbitrary, capricious, or without sound basis in fact or law. On the basis of the record before us, we conclude that the SO did not abuse her discretion in rejecting petitioners’ OICs.” T. C. Memo. 2023-69, at p. 13. (Citations omitted).

It’s a many-times-told tale, but worth repeating. When making an OIC, do as the bridge players do…lead from your longest and strongest