We know Section 7345 Tax Court review is limited to IRS’ certification of a “seriously delinquent tax debt. ” The actual passport grab comes from DOS. Most losing petitions result from IRS dropping the cert and telling DOS; the petition is therefore dismissed because Tax Court can’t grant any other or further relief, despite the creative efforts of counsel to backdoor CDP challenges and contest SNODs of long ago.

But Daniel Olin Nye, T. C. Memo. 2023-154, filed 12/28/23, is off the beaten path because Ch J Kathleen (“TBS = The Big Shillelagh”) Kerrigan actually reaches the merits of the cert and consequent grab.

Daniel claims he’s current with his IA payments on the “seriously delinquent tax debt,” which arose from a bunch deficiencies and TFRPs (hi, Judge Holmes, happy New Year) amounting (with interest) to a hundred grand.

And so he is, but that doesn’t save his passport. His IA “was conditional upon periodic reviews of petitioner’s current financial condition. See Internal Revenue Manual 5.19.1.6.5.4 (July 1, 2021).” T. C. Memo. 2023-154, at p. 3. Daniel was supposed to provide periodic updates, but didn’t.

“… respondent mailed petitioner a Notice of Intent to Levy for each of the years and periods at issue. The Notices of Intent to Levy stated that petitioner did not provide updated financial statements as required under the installment agreement. They notified petitioner that he could provide the updated financial statements or request a Collection Appeals Program hearing, but that failure to do either would result in the termination of his installment agreement. Petitioner neither requested a Collection Appeals Program hearing nor provided the requested information.” T. C. Memo. 2023-154, at p. 3.

After a nod to Van Bemmelen (scope and standard of review in Section 7623 whistleblowing; should it be imported to passport grabs?), Ch J TBS doesn’t need to go there, as either either way Daniel loses.

Daniel’s debts check all the Section 7345 boxes: over the $59K limit, certificates of assessment, NFTLs and NITLs with all review rights gone, and no financial updates.

Daniel claims he sent in the documents IRS wanted, but IRS says he didn’t, and Daniel has no evidence that he did. True, he is paying as agreed on the IA, but that isn’t enough.

So we still must await the revelation of the scope and standard of review in passport grabs.