I think it was George Bernard Shaw who said that it was difficult to garner even a small success. Karen Lee Shuster, Docket No. 27575-22, filed 1/13/25, has done that, avoiding the Section 6673 frivolity chop by virtue of an IRS miscue.

Karen Lee filed a W-4 claiming exemption from Federal income tax, filed a zero wages 1040, and sought a refund of FICA/FUTA/ITW. IRS refused refund, but gave Karen Lee a SND at no extra charge. IRS asserted the five-and-ten substantial understatement add-on, and Section 6651(a)(2) late payment chop.

Karen Lee petitions, but it’s the usual protester jive, on which Judge Ronald L. (“Ingenuity”) Buch wastes little time and less ingenuity. The substantial understatement is a walkover, but failure to pay is where Karen Lee gains her small success.

IRS has BoP on failure to pay, and drops the ball.

“Section 6651(a)(2) applies when someone fails ‘to pay the amount shown as tax on any return.’ The amount shown as tax on Ms. Shuster’s return was zero. The Commissioner accepted Ms. Shuster’s return, and she paid the amount reported, zero.” Transcript, at   p. 9.

And while Karen Lee made no nonfrivolous arguments, and persisted even when warned by Judge Buch, she did prevail on the Section 6651(a)(2) failure to pay, so no Section 6673 chop.