Tax Court In Brief | Jackson v. Commissioner | What's At Issue In Reviewing The Determination Of A Collection Due Process Hearing?

• Published date: 16 May 2022
• Subject Matter: Litigation, Mediation & Arbitration, Tax, Trials & Appeals & Compensation, Income Tax, Tax Authorities
• Law Firm: Freeman Law
• Author: Freeman Law

The Tax Court in Brief - May 9th - May 13th, 2022

Freeman Law's 'The Tax Court in Brief' covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.

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Tax Litigation: The Week of May 9th, 2022, through May 13th, 2022

• Lewis v. Commissioner, TC Memo. 2022-47| May 9, 2022 | Greaves, J. | Dkt No. 10007-20W
• Rogerson v. Commissioner, TC Memo. 2022-49| May 12, 2022 | Toro, J. | Dkt No. 5848-20
• Evert v. Comm'r, T.C. Memo. 2022-48| May 9 2022 | Marshall, A | Dkt. No 12901-19
• Harrison v. Comm'r, T.C. Memo 2022-6 | May 12, 2022 | Panuthos, J | Dkt. No. 12170-19S

Jackson v. Comm'r, T.C. Memo. 2022-50 | May 12, 2022 | Vasquez, J. | Dkt. No. 19634-18L

Opinion

Short Summary: Petitioners, a married couple residing in Kansas, timely filed their Forms 1040, Individual Income Tax Returns, for 2012, 2013, 2014, 2015, and 2016 but did not fully pay the tax shown on those returns. The Internal Revenue Service ('IRS') assessed the balance of the unpaid tax, plus additions to tax and interest.

In January 2017, petitioners submitted a Form 9465, Installment Agreement Request, and Form 433-F, Collection Information Statement. Petitioners requested a monthly installment payment of $556. The IRS rejected this request on the grounds that petitioners had enough cash or equity to pay at least part of the balance due. The IRS also told petitioners that they would need to make all required estimated tax payments in order to become eligible for an installment agreement.

In July 2017, the IRS issued petitioners a notice of federal tax lien for 2012 through 2016. In November 2017, the IRS also issued a notice of federal tax lien for 2016. Both notices informed petitioners of their right to request a collection due process ('CDP') hearing within 30 days of the date of the notices. Petitioners did not request a CDP hearing within that timeframe.

In February 2018, the IRS issued petitioners a notice of intent to levy for 2012 through 2016. Petitioners' authorized representative submitted a Form 12153, Request for a Collection Due Process or Equivalent Hearing, for 2006 through 2016. The Form 12153 indicated that petitioners were seeking 1) review of the notices of federal tax lien and the levy notice, 2) an installment agreement as a collection alternative, and 3) innocent spouse relief. Petitioners did not attach a Form 8857, Request for Innocent Spouse Relief, as instructed by the Form 12153.

Appeals found that the Form 12153 was timely as to the proposed levy but untimely as to the notices of federal tax lien. Thus, petitioners were granted a CDP hearing with respect to the proposed levy and an equivalent hearing with respect to the...