T.C. M em o . 2 0 1 8 -2 1 6

UNITED STATES TAX COURT

J AM ES EDWARD TERRELL, Pet it i o n er v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 1 8 3 99 -1 6 L. Fi l edDecem b er 2 7 , 2 01 8
.

J am es Edw ard Terrel l , p ro s e. St ep hen C. W el k er, J effreyE. Go l d, an d Bart h ol o m ew Ci ren za, fo r
res p o n d en t.

M EM ORANDUM OPINION LAUBER, J u d g e: Inth is co l l ect i o n du e p ro ces s (CDP) cas e, p et it i o n er
s eek s rev i ew p u rs u an tt o s ect i o n 6 3 3 0 (d ) 1 o f t h e d et erm i n at i o n b y th e In t ern al

1 Al l s t atut o ry

referen ces are t o th e In t ern al Rev en u e Co de i n effect atal l (co n ti n u ed ...)- 2
-

[* 2 ] Rev enu e Serv i ce (IRS o r res p o n d en t ) t o up h o l dth e i ss u an ce o f a n o t i ce o f i n t en tt o l ev y . Th e IRS i n i t i at edth e co ll ect i o n act i o n wi t h res p ectt o p et i t i on er’ s Fed eral i nco m e t ax l i ab i l i ti es fo r 2 0 0 9 an d 2 0 1 0 . Res p o n den th as m o ved fo r
s u m m ary ju d g m en tu nd er Ru le 1 2 1 , co n t en d i n g t h atth ere are n o d i s p u t ed i s s u es o f
m at eri al factan dth ath i s d et erm i n at i o n t o s u s t ai n th e p ro po s edco l l ect i on act i o n
was p ro p er as a m at t er o f l aw. W e ag ree an dacco rd i n gl y wi l l g ran tth e m o t i o n . Back gro u n d Th e fo l l o w i n g fact s are b as edo n th e p art i es ’ p l ead i n g s an dres p o n d en t ’ s
m o ti o n p ap ers , i n cl ud i n g th e at t ach edd ecl arat io n s an d ex h i b i t s . See Ru l e 1 2 1 (b ). Pet i t io n er res i dedi n W as hi ng t o n , D.C., wh en h e fi l edh i s p et i ti o n . Du ri n g 2 0 0 9 an d2 0 1 0 p et i ti o ner wo rk edas a m i n i s t er an drecei v edi n co m e
co n si s t i n g o f wag es , s el f-em p l oym en ti nco m e, an d So ci al Secu ri ty b en efi t s . On M ay 1 4 , 2 0 1 4 , h e fi l edd el i n qu en tFed eral i n co m e t ax retu rn s fo r b o t h y ears . Duri n g th e p ro ces s i ng o f t hes e retu rn s th e IRS d et erm i n edthatp et it i on er h adm ad e
m at h em at i cal erro rs wh en cal cu l at i ng h i s t ax . Aft er co rrect i n g t h es e m ath em at i cal
erro rs , s ee s ec. 6 2 1 3(b )(1 ), th e IRS m ad e as s es s m en t s o f $ 2 ,5 9 4 an d$ 5 ,5 3 8 fo r 2 0 0 9 an d2 0 1 0 , res p ect i v el y . Fo r each y ear t h e IRS al s o as s es s edi n t eres t an dan (...co n t i n u ed ) rel ev an t t i m es , an d al l Ru l e referen ces are t o the Tax Co urtRu l es o f Pract ice an d Pro cedure. W e ro u n d al l m o n et ary am o u n t s t o t h e n eares td ol l ar.- 3
-

[* 3 ] ad d it i o n t o t ax fo r l at e fi l i n g . See s ec. 6 6 51 (a)(1 ). As o f J an u ary 3 0, 2 0 1 5 , p et i t i o n er h adb al an ces du e o f $ 9 4 1 an d $ 6 ,5 1 2 fo r 2 0 0 9 an d2 0 10 , res p ect i v el y . 2 He d i d n o t p ay

th es e l i ab i li ti es up on n o t i ce an d d em an d fo r p aym en t
. OnJ an u ary

3 0 , 2 0 1 5 , i n an at tem

p t t o co l l ectth es e u np ai dl i ab i l i t i es , th e IRS s en t p et i t io ner a Let t er 1 1 , No t i ce o f In t en tt o Lev y (l ev y n o t i ce), fo r 2 0 0 9 an d 2 0 1 0 . OnFeb ru ary

5 , 2 0 1 5, p et i t i o n er s ub m i t t eda Fo rm 1 2 1 5 3 , Requ es t fo r Co l

l ect io n Du e Pro ces s o r Equ iv al en tHeari n g , i n wh i ch h e req ues t edrel i ef fo r h i s 2 0 0 6 -2 0 0 8 t ax y ears . On Feb ru ary 2 8 , 2 01 5 , h e m ai ledt o the IRS a l et ter i n wh i ch h e req u es t eda h eari n g fo r 2 0 0 9-2 0 1 0 , th e s ub jecto f t h e l ev y

n o t i ce. OnM arch 9 , 2 01 5 , a s et t l em en to ffi cer (SO1 ) fro m th e IRS Ap p eal s Offi ce
co n tact edp et i ti o n er an dex pl ai n ed t h ata h eari n g co u l dn o tb e h el dfo r 2 0 0 6 -2 0 0 8 b ecau s e th o s e y ears were n otad dres s edi n th e l ev y n o t i ce. Pet i t i o n er as kedwh y th e p ro ces s i ng o f h i s 2 0 0 9 ret u rn h adres u l tedi n a b al an ce du e i n s t eado f t h e refu ndh e h adreq u es t ed
. SO1 ex p l ai n edth atth e IRS h adad ju s t ed h i s t ax l i ab i l i t y
up ward s aft er co rrect i n g th e m at h em at i cal erro rs m en t i o n edab o ve. SO1 p ro p o s ed t o s ch edu l e a CDP h eari n g , b u t p et i ti o n er as k edth atth e h eari n g b e d eferred t o al l o w h i m

t i m e t o s ub m i tan am en d edretu rnfo r 2 00 9
.

2 Th es e b al an ces refl ecta redu ct i o n fo r wi t h h o l d i ng cred i t s t o t al i n g $ 1 ,5 6 0 an d $ 1 ,0 3 2 fo r 2 0 0 9 an d2 0 1 0 , res p ect i v el y . Th e 2 0 0 9 b al an ce al s o refl ect s a redu ct i o n fro m

an o v erp aym en tcred i t , t ot al i n g $ 5 7 4 , fro m t ax y ear 2 0 1 3
.- 4
-

[* 4 ] In s t ead of fi l in g a Fo rm 1 0 4 0 X , Am en dedU.S. In d i vi du al In co m e Tax Retu rn , fo r 2 0 0 9 , p et i t i o n er s ub m i t t edt o th e IRS an o t h er Fo rm 1 0 4 0 , U.S. In d i v i du al In co m e Tax Return . Th e IRS reject edth e Fo rm 1 0 4 0 as dup li cat i v e an d i n s t ru ct ed h i m t o s ub m ita Fo rm

1 0 4 0 X. He co n t act ed t h e IRS t o s ay t h ath e l ack edth e i n fo rm at i o n n eed edt o fi le a Fo rm 1 0 4 0 X. He d oes n o tco nt en d(an dth e reco rdd o es
n o trefl ect ) t h ath e s ub seq uen t l y fi l eda Fo rm

1 0 4 0 X fo r 2 0 09 o r 2 0 1 0
. OnAu gu s t1 1 , 2 0 1 5, t he IRS s en tp et i t i o n er a n o t ice o f Fed eral t ax l i en (NFTL) fi l in g fo r 2 00 9 an d2 0 1 0 . OnOct o b er 1 6 , 2 0 1 5 , wel l p as tth e 3 0-d ay p eri

o ds p eci fi edi n s ect i o n 6 3 30 (a)(3 )(B), p et i ti o n er s ubm i t t eda s eco n dFo rm 1 2 1 5 3 req u es t i ng a h eari n g wi t h res pect t o th e NFTL fi l i n g an d t h e p ri o r l ev y n o t ice. In h i s h eari n g req u es t h e ex p res sedn o i n t eres ti n a co l l ect i o n al tern at i ve b u t ch al l en g edh i s u nd erl y i n g t ax l i ab i l i ti es , s t at i n g : “ Th e IRS h as d et erm i n edth atI
o we m o ney

b as edo n i nco rrect i n fo rm at io n.” Aft er recei v i ng th e s eco n d Fo rm 1 2 1 53 th e IRS as s ig n edan o th er s et t l em en t
o ffi cer (SO2 ) t o p et i t i o n er’ s cas e. Co n cl u d in g th at p et i t io n er’ s Oct o b er 1 6 , 2 0 1 5 , h eari n g req u es twas u n t i m el y , SO2 s ch edu l ed an “ equ i v al en th eari n g .” See s ec. 3 0 1 .6 3 2 0 -1 (i )(1 ), Pro ced . & Ad m i n . Reg s . SO2 rev i ewedth e ad m i ni s t rat i v e fi l e
an d co n fi rm edth atth e IRS h adp ro perl y as s es s edp et i t i o ner’ s t ax l i ab i l i t i es fo r 2 0 0 9 an d2 0 1 0 , h adt im el y i s s u edn o t i ces o f co l l ect i o n act i o n t o h i s l as tkn o wn- 5
-

[* 5 ] ad dres s , an dh ads at is fi edal l o t h er req u i rem en t s o f ap pl i cab l e l aw an d ad m i n is trat i v e p ro cedu re. Up o n rev i ew o f p et it i on er’ s acco u n t t ran scri p t s, SO2 d i s co v eredth ath e was n o ti n co m p l i an ce wi t h h i s t ax fi l i n g o b l i g at i o n fo r 2 0 1 4
. OnFeb ru ary 2 2 , 2 0 1 6, SO2 m ai l edt o p et it i on er (at h is cu rren tad dres s o f
reco rd ) a l et t er s ch edu l i n g a t el ep h o n e h eari n g fo r M arch 2 3 , 2 0 16 . SO2 i nd i cat ed th ats h e co ul dn o tco n s i d er co ll ect i o n al t ern at i v es u nl es s p et i t i o n er s ub m i t t eds p eci fi edIRS fo rm s, s up p o rt i n g fi n an ci al i n fo rm at i o n , an da co p y o f a s i g n edt ax retu rn fo r 2 0 14 . If p et it i on er wi s h edt o ch al l en g e h i s u n d erl y i n g t ax l i ab i l it y fo r 2 0 0 9 o r 2 0 1 0 , h e was i n s t ru ct edt o s ub m itwi t h i n 2 1 d ay s an am en d edretu rn fo r th e rel ev an ty ear. Pet i t i o ner s ub m i t t edn o n e o f t h e requ es t edi n fo rm at i on b efo re t h e h eari n g
an d d i d n o tcal l i n fo r t h e h eari n g atth e s ch edu ledt i m e o n M arch 2 3 , 2 0 1 6 . SO2
s ub s equ en t l y

cal l edh i m

atth e n u m

b er h e h adp ro v i d ed , b u th e d i dn o tan s w er. SO2 at t em

pt edt o l eav e a v o i ce m es s ag e, b u tp et i t i on er’ s v o i ce m ai l b o x was fu l l
. Lat er t h at d ay

SO2 s en tt o p et i t i o n er (at h i s cu rren tad dres s o f reco rd ) a “ l as t ch an ce” l et t er. Th i s l et t er ex p l ai n edth atth e h eari n g wo u l dn o tb e res ch edu l edb u t th atSO2 wo u l d k eep th e cas e o p en fo r t wo week s t o p erm i tp et i t i o n er t o s ub m i t th e p rev i o u s l y req u es t edfo rm s an dreturn s o r an y o t h er i n fo rm at i o n h e wan t edt o- 6
-

[* 6 ] s ub m i tfo r co n s i d erat i o n. SO2 s et a d ead l i n e o f Ap ri l 6 , 2 0 16 , fo r s ub m i s s i o n
o f t h es e d o cu m en t s . OnAp ri l 2 9 , 2 0 1 6, m o re t h an th ree week s aft er th atd ead l i ne h ad p as s ed , p et i t i o n er s en t SO2 a l et t er at t ach i n g an i n co m p l et e Fo rm 4 33 -A, Co l l ect i on In fo rm at i o n St at em en tfo r W ag e Earn ers an dSel f-Em p l o y edIn d i v i du al s , wi t h n o
s up p ort i n g fi n an ci al d at a. Pet i t i o n er ack n o wl ed g edth at h e h adrecei v edSO2 ’ s

“ l as tch an ce” l et t er an d s t at edth ath e was “ w o rk i n g t o s en d [t h e o t h er req u es t ed
m at eri al s ] * * * as s o o n as p o s s i b le.” Fi ft y -ei gh td ay s l at er, h av i n g recei v ed
n o th i n g fu rt h er fro m

p et i t i o n er, SO2 cl o s edth e cas e. OnJ u ly 1 8 , 2 0 16 , th e IRS i s s u edp et i t i o n er a d eci s io n l et t er i n wh i ch i t
s u s t ai n edth e l ev y

n o t i ce. 3 OnAu g us t 1 7, 2 0 16 , p et i t i o n er m ai l ed t o th i s Co u rt a p et i t i o n fo r rev i ew un d er s ect i o n 6 3 3 0 (d )(1 ). OnAu g u s t2 1 , 2 0 1 8 , res p o n d en t fi led a m o t i o n fo r s u m

m ary ju d g m en t , t o wh i ch p et i t i o ner t i m el y res p o n d ed
.

3 Th e IRS wi l l ord in ari l y

i s s u e a d eci si o n l et t er aft er co m p l et i n g an equ i v al en th eari n g . See M o o rh o u s v . Co m m i s s io n er, 1 1 6 T.C. 2 6 3 , 2 7 0 (2 0 01 ); s ec. 3 0 1 .6 3 3 0 -1 (i )(1 ), Pro ced . & Ad m i n . Reg s . Th e d eci s i o n l et ter d i dn o tad dres s the NFTL fi l i n g .- 7
-

[* 7 ] Di s cu s s i o n A. J u ri s d i ct i o n Th e Tax Co u rt i s a co u rto f l i m i t ed juri sd i ct i o n , an dwe m u s tfi rs t as cert ai n wh et h er t h e cas e b efo re u s i s o n e t h atCo n g res s h as au t h o ri zedu s t o co n si d er. Sec. 7 4 42 . Ina CDP cas e s u ch as th i s, o ur ju ri s d i ct i o n d ep en ds o n the i s s u an ce o f
a n o t i ce o f d et erm i nat i o n fo l l o wi n g a t i m el y req u es tfo r a CDP h eari n g an dth e fi li n g o f a t i m el y pet i t i o n fo r rev i ew. Sec. 6 3 3 0 (d )(1 ); Oru m v . Co m m i s si o n er, 1 2 3 T.C. 1 , 8 (2 0 0 4 ), aff’ d , 4 1 2 F.3 d8 1 9 (7 th Ci r. 2 00 5 ). Res p o n d en ti n i t i al l y

m o vedt o d i s m i s s t h i s cas e fo r l acko f ju ri sd i ct i o n o n th e g ro u n dth atth e IRS h adi ss u edp et it i o n er a d eci s io n l et t er rat h er t h an a n o t i ce
o f d et erm i nat i o n . W e n o rm al l y l ackjuri s d i ct i o n t o rev i ew a d eci si o n l et t er i s s u ed aft er an equ i v al en th eari n g . Oru m , 1 2 3 T.C. at1 2 ; M o o rh ou s v . Co m m i s s io n er, 1 1 6 T.C. 2 6 3 , 2 7 0 (2 0 0 1 ). Bu t res p on d en ts ub s equ en t l y wi t h drew h is m o t i o n t o d i s m i s s , n o t i n g co rrect l y

th atp et i t i o n er’ s Feb ru ary 2 8, 2 0 15 , h eari n g req u es twas t i m el y w i t h res p ectt o (i
. e., was fi l edwi t h in 3 0 d ay s o f) t h e l ev y n ot i ce, ev en th o u g h h i s Oct o b er 1 6, 2 0 1 5 , h eari n g req u es twas u n ti m el y wi t h res p ectt o th e NFTL. See s ec. 6 3 3 0 (a)(3 )(B). Res p o n d en tth u s ag reed , an dwe co n cl u d e, t h at SO2 i nco rrect l y

affo rd edp et i t i o n er an equ i v al en t h eari n g rat h er t h an a CDP- 8
-

[* 8 ] h eari n g wi t h res p ectt o t h e l ev y n o t i ce. See s ec. 3 0 1.6 33 0 -1 (c)(2 ), Q&A-C1 th ro u g h C4 , Pro ced . & Ad m in
. Reg s . A d eci s i o n l et t er co n st i tut es a “ d et erm i n at i o n” s u ffi ci en tt o i n v o k e t h i s Co u rt ’ s juri s d i ct i o n wh en a t ax p ay er t i m el y req u es t s a CDP h eari n g b u ti s erro n eo u s l y affo rd edan equ i val en th eari n g . See W i l s o n v . Co m m i s s i o n er, 1 31 T.C. 4 7 , 5 3 (2 00 8 ) (“ [T] he n am e o r t h e l ab el o f a d o cu m en td o es n o tco nt ro l wh et h er th e d o cu m en tem

b o d ies a d et erm i nat i o n u n d er s ect i o n 6 3 3 0
. ”); Crai g v . Co m m i s s i on er, 1 1 9 T.C. 2 5 2 , 2 5 9 (2 00 2 ). W e t hu s h av e ju ri s d i ct i on t o rev i ew t h e IRS’ d et erm i n at i o n i f t h e t ax p ay er p et i t i o n s th i s Co u rtwi t h i n 3 0 d ay s o f t h e d at e o f t h e d et erm i n at i o n . Sec. 6 3 3 0 (d )(1 ). Here, p et i t i o n er m ai l edh i s p et i t io n t o th i s Co u rt
o n Au g u s t1 7 , 2 01 6 , th e 3 0 t h d ay aft er t h e d at e ap p eari n g o n th e d eci s io n l et t er (J u l y 1 8 , 2 0 1 6 ). Th e p et i ti o n was th u s t i m el y u n d er t h e “ t i m el y

m ai l ed , t i m el y fi led ” ru le. See s ecs . 6 3 3 0(d )(1 ), 7 5 0 2 . W e acco rd i n gl y h av e ju ri s d i ct i on t o
co n si d er t h i s cas e. B. Su m

m ary J u dg m en tSt an d ardan d St an d ardo f Rev i ew Th e p u rp os e o f s u m

m ary ju d g m en t i s t o ex p ed it e l i t i g at i o n an d av o i dco st l y , t i m e-co n s u m i n g , an du n n eces s ary tri al s . Fl a. Peach Co rp . v . Co m m i s si on er, 9 0 T.C. 6 7 8 , 6 8 1 (1 9 8 8 ). Th e Co urtm ay g ran t s umm ary

ju d g m en twh en th ere i s n o g en ui n e d i s p u t e as t o an y m at eri al fact an da d eci s i o n m ay b e ren dered as a m at t er- 9
-

[* 9 ] o f l aw. Ru l e 1 2 1 (b ); Su n d s t ran dCo rp . v . Co m m i ss i o n er, 9 8 T.C. 5 1 8 , 5 2 0 (1 9 9 2), aff’ d , 1 7 F.3 d 9 6 5 (7 t h Ci r. 1 9 9 4 ). Ind eci d i n g wh et h er t o g ran t s u m m ary ju d g m en t , we co n s t ru e fact ual m at eri al s an di n feren ces drawn fro m th em i n th e l i gh t m o s tfav orab l e t o th e n o n m o v i n g p art y . Su n d st ran d Co rp . , 9 8 T.C. at5 2 0
. Ho wev er, th e n o n m o v in g p arty m ay n o tres tup o n m ere al l eg at i o n s o r d en i al s o f h i s p l ead i n g s b u ti n s t eadm u sts etfo rt h s p eci fi c fact s s h o wi n g th atth ere i s a g en ui n e d i s p u t e fo r t ri al
. Ru l e 1 2 1 (d ); s ee Su n ds t ran dCo rp ., 9 8 T.C. at5 2 0 . W e
co n cl u d e th atth e qu es t i o n s b efo re u s m ay ap p ro pri at el y

b e ad ju d i cat eds u m

m ari l y . Wh ere t h e v al id i t y

o f t h e t ax p ay er’ s u n d erl y i n g t ax l i ab i l i t y i s p ro p erl y

at i s su e, we rev i ew t he IRS d et erm i n at i o n d e n o vo . Go za v . Co m m is s i o n er, 1 1 4 T.C. 1 7 6 , 1 8 1 -1 8 2 (2 0 00 ). Oth erwi s e we rev i ew t h e o u t co m e o f a CDP h eari n g fo r ab u se o f d i s cret i o n o n l y . See i d . at1 8 2. Ab u s e o f d i s cret i o n ex i s t s wh ena d et erm i n at i o n i s arb i t rary , cap ri ci o u s , o r wi t h o uts o u n d b as i s i n facto r l aw. M u rp h y v . Co m m i s s i o n er, 1 2 5 T.C. 3 0 1 , 3 2 0 (2 0 0 5), aff’ d, 4 6 9 F.3 d2 7 (1 s tCi r. 2 0 0 6 ). Pet i t i o ner s eek s t o ch al l en g e h i s u n d erl y i n g t ax l i ab i l i t i es fo r 2 0 0 9 an d 2 0 1 0 . Bu th e fai l edt o s ub m i tan y ev i d en ce t o SO2 o n th i s s ub j ect , d es p i t e s ev eral req u es t s th ath e d o s o . No r d i dh e s ub m i t , du ri n g o r aft er t h e CDP h eari ng , am en d edretu rn s s h o w i n g wh ath e b el i ev ed h i s co rrect t ax l i ab i l i t i es fo r 2 0 0 9 an d 2 0 1 0 t o b e. SO2 ad v i s edh im o n Feb ru ary 2 2 , 2 0 1 6 , o f t h e n eedt o s ub m i t am en d-- 1 0 -

[* 1 0 ] ed retu rn s , b u th e s ub m i t t ed n o retu rn s du ri n g th e en s ui n g fo ur m o n t h s . 4 W e
co n cl u d e th atp et i t i on er d i dn o trai s e a p ro p er ch al l en g e t o h i s 2 0 0 9 an d2 0 1 0 t ax l i ab i l i t i es atth e CDP h eari n g . See s ec. 3 0 1 .6 3 3 0 -1 (f)(2 ), Q&A-F3 , Pro ced . & Ad

m i n . Reg s . (p ro v i d i n g t h atan u n d erl y i n g l i ab i li t y ch al l en ge i s n o t p ro p erl y rai s ed i f “ th e t ax p ay er fai l s t o p res en tt o Ap peal s an y ev i den ce wi t h res p ectt o th ati s s ue aft er b ei n g g i v en a reas o n ab l e o p p o rtu ni t y t o p res en ts u ch ev i d en ce”). Pet i t i o n er i s thu s p recl u d edfro m ch al len g i n g h i s 2 0 0 9 -2 0 1 0 l i ab i l i t i es i n th i s Co u rt . See Gi am el l i v . Co m

m i ss i o n er, 1 2 9 T.C. 1 0 7 , 1 13 (2 0 0 7 ); Gen t i l e v . Co m m i s s i o n er, T.C. M em o . 2 01 3 -1 7 5 , 1 0 6 T.C.M . (CCH) 7 5 , 7 6 , aff’ d , 5 9 2 F. Ap p ’ x 8 2 4 (1 1 t h Ci r. 2 0 14 ). W e t h erefo re rev i ew SO2 ’ s act i o n fo r ab u s e o f d i s cret i o n o n l y . C. An al y s i s In d et erm in i n g wh et h er t h e Ap p eal s o ffi cer ab u s edh er d i s cret i on , we co n s i

d er wh et her s h e: (1 ) p ro p erl y v eri fi edth atth e req u i rem en t s o f an y ap p l i cab l e l aw
o r ad m i n i s t rat i v e p ro cedu re h adb een m et , (2 ) co n s i d eredan y rel ev an ti s s u es p et i

t i on er rai s ed , an d(3 ) d et erm in edwh et h er “ an y p ro p o s edco l l ect i o n act i on b al an ces th e n eed fo r t h e effi ci en tco l l ect i o n o f t ax es wi t h th e l eg it i m at e co n cern o f * * *

4 SO1 h adp rev i o u s ly

s u s p en d edth e CDP h eari ng atp et i t i o ner’ s req ues tt o en ab le h im

t o fi le an am en d edreturn fo r 2 00 9 . Bu ti n s teado f fi l i n g a Fo rm 1 0 4 0 X h e s ubm i t t ed an o th er Fo rm 1 0 4 0 , wh i ch the IRS reject edas dup l i cat i v e. See s up ra p . 4
. AnIRS em

p l o y ee i n s t ru ct edh im

t o fi l e a Fo rm

1 0 4 0X, b u t h e ap p aren t l y d i d n o td o s o. In an y ev en t, h e s ub m i t t edn o co p ies o f an y am en d edretu rn s t o SO2
.- 1 1 -

[* 1 1 ] [p et i t i o n er] th atan y co l l ect i on act i o n b e n o m o re i n t ru s iv e t h an n eces s ary .” See s ec. 6 3 3 0 (c)(3 ). Ou r rev i ew o f t h e reco rdco n fi rm s th atSO2 p ro p erl y d i s ch arg edal l o f t h es e du t i es . Pet i t i o ner ad v an ces th ree p ri n ci p al co n ten t i o n s . Fi rs t , h e ch al l en g es h i s 2 0 0 9 an d2 0 1 0 t ax l i ab i l i t i es o n th e m eri ts , co n t en di n g thath e s h o ul d “ qu al i fy fo r t ax am n es t y .” 5 As no t eds upra p p . 9 -1 0, p et i t io n er d i dn o tp ro perl y ch al l en g e h i s
u n d erl y i n g t ax l iab i l i t i es atthe CDP h eari n g. He i s th us p recl u d edfro m ad v an ci n g th i s arg u m en th ere. Seco n d , p et i t i o n er co n t en d s t h ath e d i d n otrecei v e t h e l ev y n o t i ce o r SO2 ’ s l et t er s ch edu l i ng th e h eari n g, al l eg i n g th at“ h i s n ei g hb o rh oo dh as a real p ro b l em wi th th e U.S. Po s t al Serv i ce” an dth at“ [m ] ai l i s n o treg ul arl y d el i v ered
. ” Res p o n d en t p ro du cedco p i es o f t he l ev y n ot i ce an dSO2 ’ s l et ters ; each i s ad dres sedt o p et i ti o n er’ s cu rren t(an dl as tkn own ) ad dres s. Iti s ap p aren tth atp et i t i o n er recei v ed th e l ev y n o t i ce (as wel l as t h e IRS l et t er reg ard i n g th e NFTL fi l i n g ) b ecau s e h e
s ub m i t t edi n res p on s e t o tho s e co m m un i cat io n s a Fo rm 1 2 1 5 3 an d a l et t er d at ed Feb ru ary 2 8 , 2 0 1 5 , requ es t i n g a h eari n g co n cern i n g t h e l ev y n o t i ce. It i s ap p aren t th ath e recei v ed SO2 ’ s “ l as tch an ce” l et t er, b ecau s e h e rep l i edt o th atl et t er o n

5 Al t h o ug h p et i t i o n er d o es n o tex p l ai n t h e b as i s fo r th i s co nt en t i o n , h e m ay b e referri n g t o the ex em

pt i o n fro m

s el f-em pl o ym en tt ax o n i n co m e d eri v edfro m th e p erfo rm an ce o f du t i es as an o rd ai n edm i n i st er. See s ec. 1 4 0 2 (e).- 1 2 -

[* 1 2 ] Ap ri l 2 9 , 2 0 1 6 , at t ach i n g an i n co m p l et e Fo rm

4 3 3 -A an d p l ed g i n g “ t o s en d

* * * [t h e o t h er req u es t edm at eri al s ] as s o on as p o s s ib l e.” SO2 th en d eferred cl o s i ng th e cas e fo r 5 8 d ay s , wh i ch al l owedp et i t i o ner m o re th anen o ug h t im e t o
s ub m i tth e rel ev an td o cu m en tat i o n. See Sh an l ey v . Co m m i s s i o n er, T.C. M em o . 2 0 0 9 -1 7 , 9 7 T.C.M . (CCH) 1 0 6 2 , 1 06 5 -1 06 6 (fi n d i n g 1 4 -d ay d ead l in e
reas on ab l e); cf. Szek el y

v . Co m m i s s i on er, T.C. M em o . 2 0 1 3 -2 27 , 1 0 6 T.C.M
. (CCH) 3 7 5 , 3 7 7
. 6 Fi n al l y , p et i t i o n er as sert s th ath e s ub m i t t edt o SO2 p ro o f t h ath e h adfi l ed h i s d el i n qu en t2 01 4 retu rn , t h us al l o wi n g h er t o co n s id er co ll ect i o n al t ern at i v es . Bu t p et i t i o n er n ev er p u t a s p eci fi c co l l ect i o n p ro p o s al o n th e t ab l e, an dh e s ub m i t t edo n ly a p art i al l y co m

p l et edFo rm

4 33 -A wi t h n o s upp o rt in g fi nan ci al d at a. W e h av e co n s i s t en tl y

h el dthati t i s n o tan ab us e o f d i s cret i o n fo r an Ap p eal s o ffi cer t o rejectco l l ect io n al t ern at i v es an ds u s t ai n co l lect i o n act io n wh ere (as h ere) t h e t ax p ay er h as fai l ed , aft er b ei n g g i v en rep eat edo p p o rtu n i t i es , t o s up p l y the n eces s ary i n fo rm at i o n . See So l n y

v . Co m m i ss i o n er, T.C. M em o . 2 01 8 -7 1, at* 1 0 ; Co p p er v .

6 Pet i t i on er as s ert s t h ath e d i dn o tcal l i n fo r th e CDP h eari n g b ecau se h e d i d n o trecei v e SO2 ’ s l et t er s ch edu l i n g i t . Bu t wh en p et i t i o ner fai l edt o cal l i n , SO2 p h o n edh i m

at t h e n u m

b er h e h adp ro v i d ed an dat tem pt edt o l eav e a v o i ce m es s ag e. SO2 then t o okth e p recau t i o n o f s en d i ng p et i t i o n er a “ l as t ch an ce” l et t er, wh i ch h e ad m i t s h av i n g recei v ed . SO2 wen t th e ex t ra m i l e i n at tem pt i n g t o m ai n t ai n co m m u n i cat i o n wi t h p et i t i o n er, an d h e m us tb ear res p o n s i bi l i t y

fo r fai l i n g t o s en d her t h e p ro m i s edd ocu m en t s .- 1 3 -

[* 1 3 ] Co m

m i s si o n er, T.C. M em o . 2 01 7 -2 31 , at* 8 ; Hu n t res s v . Co m m is s i o n er, T.C. M em o . 2 00 9 -1 6 1 , 9 8 T.C.M . (CCH) 8 , 1 0 -1 1 ; Prat er v . Co m m is s i o n er, T.C. M em o. 2 0 0 7 -2 4 1 , 9 4 T.C.M . (CCH) 2 0 9, 2 1 0; Ro m an v . Co m m i s s i o n er, T.C. M em o. 2 0 0 4 -2 0 , 8 7 T.C.M
. (CCH) 8 3 5 , 8 3 8
. Fi n d i n g n o ab u s e o f d i s cret io n i n th i s o r i n an y

o t h er res pect , we wi l l g ran ts u m m ary ju d g m en tfo r res po n d en tan d
s u s t ai n th e p ro p os edco ll ect i o n act i on . 7 To refl ectthe fo reg o i n g , Anap p ro p ri at e o rd er an dd eci s i o n wi l l b e en t ered
.

7 In h i s res p o ns e t o th e s u m m ary ju d g m en t m o ti o n p et i t io n er co n t en d s fo r t he fi rs tt i m e t h atth e IRS erred i n fai l i n g t o i s s u e h im a n o t i ce o f d efi ci en cy

fo r 2 0 0 9 an d 2 0 1 0 . Bu t th e as s es s m en t s fo r t h es e y ears were b as edo n t h e t ax th atp et i t i o n er rep ort edo n h i s d el i nqu en t retu rn s , as ad ju s t edt o co rrect m ath em at i cal erro rs . Th e IRS can as s es s the t ax s h o wno n a retu rn an dm ak e ad d i t i o n al as ses s m en t s ari s in g fro m

co rrect i on o f m ath em at i cal o r cl eri cal erro rs wi th o u ts en d in g th e t ax p ay er a n o t ice o f d efi ci en cy . See s ecs . 6 2 01 (a)(1 ), 6 2 1 3 (b )(3 ).