Judge Nega cannot tell whether the response of Spencer Olson, Docket No. 16457-24L, filed 4/30/26, to the Section 6662 chop AUR laid upon him before issuance of the SND that gave rise to this CDP was acted upon, as abatement thereof never made it into the account transcript incorporated in the administrative record. 

Judge Nega Judge-‘spains why this matters.

“AUR penalties require supervisory approval to be included in the Notice of Deficiency if the taxpayer responds to a notice of the penalty prior to the issuance of the Notice of Deficiency. SO J appears to have concluded that petitioner made such a response in this case and that no supervisory approval was secured, making the penalty invalidly assessed when it was included in the Notice of Deficiency. See § 6751(b)(1).” Order, at p. 1. (Name omitted).

Moreover, “(A)fter deciding that the penalty must be abated, SO J appears to have completed a Form 3870, Request for Adjustment, on September 5, 2024, requesting that the section 6662 penalty be abated. This request is mentioned in the Notice of Determination issued on September 17, 2024, but nothing in the record makes it clear

whether this request was actually processed.” Order, at p. 1. (Name omitted).

So let IRS’ counsel dish whether the chop is off the table, so Judge Nega needn’t deal with it.

Takeaway- Although electronically-assessed chops are Boss Hoss-exempt per Section 6751(b)(2)(B), there is an escape hatch for those who move quickly.