Daniel J. Bealko, T. C. Memo. 2024-110, filed 12/16/24, eschews such feeble steps as seeking collection alternatives, inventing instead a novel tax credit to offset IRS’ levy on his annuity in support of collection the $7.4 million in back taxes he owes.

IRS applied the grab to the oldest IRS applied the grab to the oldest year, as SOL was about to run. IRS didn’t release its lien for that year until after the levy was complete. Dan takes the levy as a refundable credit for his most current year, claiming that if IRS grabs current income to pay past debts he can never wipe out his total debt, as the levies just keep cascading, wiping out current income so he can’t pay tax thereon, as the years roll on.

Judge Albert G. (“Scholar Al”) Lauber can’t hand out “Good Try” Awards for originality but can refer to classical mythology.

“…petitioner does confront a practical problem, and we understand why he feels frustration akin to that of Sisyphus, who could never get the huge rock all the way up the hill. At trial we suggested that a sensible course of action may be to submit to the IRS a request for collection relief, in the form of an offer-in-compromise or an installment agreement, and seek assistance from a Low Income Taxpayer Clinic or the Taxpayer Advocate Service in that endeavor.” T. C. Memo. 2024-110, at p. 4.

But as Daniel didn’t seek a CA via a CDP for the levy as issue, he’s stuck.