I don’t know if Judge Rose E. (“Cracklin'”) Jenkins is as big a fan of Blake Shelton’s 2001 smash hit as I am, but when AO R (name omitted) threw to the wrong base (COIC) when Richard L. Brown and Camille C. Brown, T. C. Memo. 2025-17, filed 2/18/25, invoked OIC-ETA (should go to Austin ETA-NEH Group), Judge Jenkins let AO R send the file to Austin, who bounced the OIC.

That’s OK. Petitioners waffled about economic hardship, disclaiming it and then claiming it.

“Petitioners’ muddling of issues in their arguments before this Court is consistent with their positions in filings before the issuance of the Current NOD. Although the Form 656 indicated that it was being submitted on effective tax administration grounds other than economic hardship, and subsequent correspondence disclaimed economic hardship, Petitioners made some statements about economic hardship on their Form 656 and in an attachment thereto. Accordingly, and consistent with IRM 5.8.11.5.2(1) and (2), the Centralized Offer in Compromise Unit considered Petitioners’ RCP and whether paying their liability would impose an economic hardship on them. AO R appropriately considered the unit’s preliminary determination rejecting Petitioners’ OIC.” T.C. Memo. 2025-17, at p. 12.

As for the flub in not getting Austin involved, “AO R did not originally seek review of Petitioners’ OIC by the ETA-NEH Group, as suggested by the IRM. See IRM 5.8.11.3.2(1), 5.8.11.5.1(8) (Oct. 4, 2019), 8.22.7.4.2(2) (Aug. 26, 2020). However, although failure to do so would not be dispositive, see Eichler v. Commissioner, 143 T.C. 30, 39 (2014) (‘[P]rovisions of the IRM do not carry the force and effect of law or confer rights on taxpayers.’), the fact that she did promptly refer it once her attention was called to that oversight is consistent with her diligence throughout her handling of the case.” T. C. Memo. 2025-17, at pp. 12-13.

Note this case arises from a blown 1031, resulting in a $600K tax liability. Clearly, must have been a big-ticket transaction. Why tax counsel weren’t sooner involved escapes me.