Tax Court In Brief | Phillips v. Commissioner | Collection Due Process And No Abuse Of Discretion

• Published date: 20 June 2022
• Subject Matter: Litigation, Mediation & Arbitration, Tax, Trials & Appeals & Compensation, Tax Authorities
• Law Firm: Freeman Law
• Author: Freeman Law

The Tax Court in Brief - June 13th - June 17th, 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 June 13th, 2022, through June 17th, 2022

• Hatfield v. Comm'r, T.C. Memo. 2022-59 | June 13, 2022 | Lauber, J. | Dkt. Nos. 7327-20 1500-21
• Chavis v. Comm'r, 158 T.C. No. 8 | June 15, 2022 | Lauber, J. | Dkt. No. 11835-20L
• Howland v. Commissioner, T.C. Memo. 2022-60 | June 13, 2022 | Weiler, J.| Dkt. No 17526-19
• Romana v. Commissioner, T.C. Summary Opinion 2022-9 | June 16, 2022 | Carluzzo, J.| Dkt. No 1156-21S
• Kellett v. Comm'r, T.C. Memo 2022-62 | June 14, 2022 | Greaves, J. | Dkt. No. 21518-18
• Walker v Commissioner, T.C. Memo. 2022-63 | June 15, 2022 |Nega, J.| Dkt. No. 16958-18L

Phillips v. Comm'r, T.C. Memo. 2022-58 | June 13, 2022 | Lauber, J. | Dkt. No. 18553-21L

• Opinion

Short Summary: Anthony Phillips (Anthony) failed to pay all of his federal tax liabilities and penalties for the tax years 2008, 2012, 2013, 2015, and 2016. Accordingly, the IRS filed a notice of federal tax lien (NFTL), and Anthony filed a request for a Collection Due Process (CDP) hearing. In his CDP request, Anthony did not challenge the amount or existence of the taxes and penalties, nor did he challenge the NFTL filing itself. Rather, Anthony only offered a collection alternative through a proposed offer in compromise (OIC).

The IRS Settlement Officer (SO) rejected the OIC but informed Anthony that he qualified for an installment agreement of $443 per month. Anthony expressed interest in an installment agreement but communicated to the SO that he could only pay $333 per month. To resolve this impasse, the SO agreed to accept an installment agreement of $333 per month for the first 12 months with $475 per month for the final 60 months. Anthony agreed to the terms of the installment agreement and executed a Form 433-D, Installment Agreement. The Form 433-D specifically indicated that the NFTL would not be withdrawn while the agreement was in effect.

The SO issued a Notice of Determination (NOD), concluding that the NFTL should not be withdrawn because the parties entered into an installment agreement. However, the NOD incorrectly stated the terms of the installment agreement, indicating that Anthony would be...