It’s been nine (count ’em, nine) years since I saw a serial bankruptcy filer show up in Tax Court. The previous case is to be found in my archive, wherein lies my blogpost “A True Rounder,” 4/20/15. But now Lisa M. Holley, T. C. Memo. 2024-54, filed 5/8/24, takes up the tactic.

I’ll let Judge Albert G. (“Scholar Al”) Lauber take up the tale.

“Upon review of publicly accessible court records, the SO ascertained that petitioner had filed for bankruptcy four times between 2016 and 2020. Each case was dismissed by the court, which determined that petitioner was seeking to delay collection efforts by the IRS and by United Healthcare, a judgment creditor. In her case activity record the SO noted the determinations by the bankruptcy court that petitioner had filed for bankruptcy in bad faith, had submitted false and misleading documents to the court, had made unauthorized payments during the bankruptcy case, and had engaged in efforts to hide income and assets.” T. C. Memo. 2024-54, at p. 3.

Lisa owed about $2 million in tax. The SO bounced her CDP for want of current compliance with estimateds. Read the opinion for more.

Turns out that when the SO told Lisa’s representative that Collections reckoned that Lisa could sell off some of her assets and do a PPIA, “(P)etitioner’s representative withdrew later that day. (The SO noted in her case activity record that ‘TP changes POAs frequently.’) Petitioner’s new representative contacted the SO…and reiterated petitioner’s desire for an IA. But the representative made no specific offer in terms of monthly payments or payment period.” T. C. Memo. 2024-54, at p. 4.

You can see where this is going.

The Section 6213(a) automatic stay, an analog to Bankruptcy’s11USC§362, gives support to the Hallmark Collective argument in deficiency cases.