Tellock: Tax Court Sustains Levy in CDP Case
In Tellock, the Tax Court upheld the IRS’s proposed levy after
concluding that Appeals did not abuse its discretion in sustaining collection
action. The case is a reminder that CDP hearings are not a second bite at the
apple; they are a forum to test collection procedure, raise permitted issues,
and propose alternatives to enforced collection.
The court’s reasoning, as
summarized by secondary reporting, turned on the taxpayer’s failure to satisfy
filing requirements and the resulting conclusion that the levy was properly
sustained. That outcome fits the usual CDP framework: if the taxpayer is not
current on required compliance or does not present a viable collection
alternative, Appeals has a strong basis to sustain enforcement.
For practitioners, the
practical point is straightforward. A CDP request should be supported by
current filing compliance, financial disclosures, and a realistic collection
proposal if the taxpayer wants Appeals to consider alternatives such as an
installment agreement or offer in compromise.
·
Confirm filing compliance before requesting CDP relief, because
missing returns can undermine any request for collection relief.
·
Build the administrative record carefully, since the Tax Court’s
review in these cases is typically deferential.
·
If the client wants to challenge the underlying liability, make
sure the issue is actually preserved under section 6330’s rules.
Contact the Tax Lawyers at
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)
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