Tax Court In Brief | Dawveed v. Comm'r | Restitution-Based Assessment And Collection Due Process

• Jurisdiction: United States,Federal
• Law Firm: Freeman Law
• Subject Matter: Litigation, Mediation & Arbitration, Tax, Court Procedure, Trials & Appeals & Compensation, Tax Authorities
• Author: Freeman Law
• Published date: 17 March 2023

The Tax Court in Brief - March 6th - March 10th, 2023

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 March 6th, 2022, through March 10th, 2023

• Estate of Kalikow v. Comm'r, T.C Memo. 2023-21 | February 27, 2023 | Thornton, J. | Dkt. No 14436-10.
• Estate of Spizzirri v. Comm'r, T.C Memo 2023-25 | February 28, 2023 | Urda, J. | Dkt. No 19124-19

Dawveed v. Comm'r, T.C. Memo. 2023-28| March 6, 2023 |Lauber, J. | Dkt. No. 19385-21L

Summary: In this collection due process (CDP) case, Mehlek Dawveed sought review of the determination by the IRS to uphold a notice of Federal tax lien (NFTL) and a notice of intent to levy for 2010. The IRS took these actions to facilitate collection of restitution it had assessed against Dawveed following his criminal conviction. In 2016 Dawveed was indicted on counts of violating 18 U.S.C. ' 287 (false claims) and 1343 (wire fraud), and section 7212(a) (obstructing administration of the internal revenue laws). The indictment alleged that Dawveed had engaged in a fraudulent scheme to obtain a tax refund of $977,558 for 2010. In 2012 Dawveed again attempted to file a false amended return for 2010 aiming to secure an additional refund. In 2018, Dawveed pleaded guilty to one count of violating 18 U.S.C. ' 1343 (wire fraud). He was sentenced to 36 months in prison, followed by 3 years of supervised release. Also, the court ordered, pursuant to 18 U.S.C. ' 3663(a)(3), that Dawveed pay restitution of $788,991 to the IRS for unrecoverable losses resulting from his fraudulent scheme.

Dawveed was released from prison early, and the court entered a consent order of forfeiture, reciting Dawveed's agreement to forfeit all property derived from proceeds traceable to his offense, including $788,991 and certain real property. Thereafter, an IRS special agent assigned to Dawveed's case completed Form 14104, Notification of Court Ordered Criminal Restitution Payable to IRS, notifying the IRS civil compliance officers of the final amount of restitution owed.

Later, the IRS made a restitution-based assessment (RBA) against Dawveed of $788,991 and mailed a Notice CP94, Criminal Restitution Final Demand Notice, demanding payment. The IRS then sent him a Notice CP504, Final Balance Due...