T.C. M em o . 2 0 2 0 -6 9

UNITED STATES TAX COURT
FREDERICK ENGLE, Pet i t i o n er v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 1 5 7 91 -1 7 L. Fi l edM ay 2 8 , 2 0 2 0
.

Ro b ertJ . Gal l ag h er, J as o n A. M o rt on , an dW i l l i am Y. W eb b , fo r p et i t i o n er. Co rey R. Cl ap p er an dAm

y Dy ar Seal s , fo r res p on d en t .

M EM ORANDUM OPINION COHEN, Ju d g e: Th i s cas e was co m m en ced i n res po n s e t o an In t ern al Rev enu e Serv i ce (IRS) Offi ce o f Ap p eal s (Ap p eal s ) n o ti ce o f d et erm i n at i o n
co n cern in g co l l ect i o n act i o n u n d er s ect io n 6 3 2 0 . Th e n o t i ce s u s t ai n eda Let t er 3 1 7 2 , No t i ce o f Fed eral Tax Li en Fi l in g an dYo ur Ri g h t t o a Heari n g Un d er IRC 6 3 2 0 (NFTL), fo r b al an ces o f res t i tut i o n-b as ed as s es s m en t s (RBA) p u rs uan tt o- 2
-

[* 2 ] s ect i o n 6 2 0 1(a)(4 ) fo r 1 9 8 4 , 1 9 8 6 -1 99 3 , an d1 9 9 5 -2 0 0 1 , wh i ch rel at e t o an
o rd er o f cri m i n al res t i tu t i on fo r t ax l o s s es . Fo l l owi n g o u r Op i n i o n i n Kl ei n v . Co m m i s s i o n er, 1 4 9 T.C. 3 4 1 (2 01 7 ),
res p o n d en t co nced ed an d co m m i t t edt o ab at e t he s t atut o ry i n t eres t an dad d i t i o n s t o t ax d et erm i n edwi t h res p ectt o t h e y ears ati s s u e. Aft er co n ces si o n s, th e s o l e i s s u e fo r d eci s i o n i s wh et h er th e res t i tu t io n o rd er i n t h i s cas e fal l s wi t h i n th e s co p e o f t h e Fi rearm s Ex ci s e Tax Im p ro v em en tActo f 2 0 1 0 (FETIA), Pub
. L. No . 1 1 1 -2 3 7 , s ec. 3 , 1 2 4 St at . at2 4 9 7 . Un l es s o t h erwi s e i n d i cat ed , al l s ect i o n referen ces are t o t h e In t ern al Rev en u e Co d e i n effect atal l rel ev an tt i m es , an d al l Ru l e referen ces are t o t he Tax Co urtRu l es o f Pract i ce an dPro cedure. Back gro u n d Th e p art i es s ubm it t edth i s cas e fu l l y s t ip u l at edu n d er Ru l e 1 2 2 . Th e
s t ip u l at edfact s are i n co rp o rat edi n o u r fi nd i n g s b y th i s referen ce. Pet i t i o n er
res i dedi n No rt h Caro l i n a wh en h e fi l edh i s p et i t i o n. Th e Un d erl y i n g Cri m i nal Cas e In 2 0 0 4 th e U.S. At t o rn ey ’ s Offi ce (USAO) fi l edan i n fo rm at i on i n t h e U.S. Di s t ri ctCo u rtfo r t h e W es t ern Di s t ri cto f No rt h Caro li n a, ch arg i ng p et i ti o ner wi t h
a s i n g l e co un to f v i o l at i n g s ect i o n 7 20 1 b y at t em p t i ng t o ev ad e o r d efeat t ax fo r 1 9 9 8 . Th e i n fo rm at i o n al s o al leg edth atp et it i o n er h adev ad edt ax fo r 1 6 y ears- 3
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[* 3 ] b et ween 1 9 8 4 an d2 0 0 2 an do wedt ax o f m o re t h an $ 6 0 0 ,0 0 0, b u tth os e y ears
were n o t i n cl u d edi n th e ch arg e i n th e i n fo rm at io n . Pet i t i o n er p lead edg u il t y t o th e i n fo rm at i o n i n 2 0 0 4
. Th e Di s t ri ctCo u rth el d a s en t en ci n g h eari n g al m o s t t wo y ears l at er i n Feb ru ary 2 0 0 6 . Th e Di st ri ctCo u rts en t en cedp et i t i o n er t o fo u r y ears o f p ro b at i o n i n cl u d i n g co n fi n em en tfo r 1 8 m o n t hs i n a co m m u ni t y co rrect i o n s cen t er. Wh i l e p et i t i o n er was t o b e i n the co m m u n i t y co rrect i o n s cen t er, t h e Di s tri ctCo u rt
o rd eredth at h e wo ul d b e p erm i t t edt o trav el t o Ch i n a fo r wo rk
. Sh ort l y aft er t h e
s en t en ci n g h eari n g th e Di s t ri ctCo u rtl earn edth atth e Bu reau o f Pri s o n s wo u l d n o t p erm i tp et i t i on er t o trav el i n t ern at i o n al ly . Th e Di s t ri ctCo u rtv acat ed t h e s en t en ce
an d i n di cat edth atp et i t i on er wo u l db e res en t en cedata l at er d at e. 2 0 0 8 Sen t en ci n g OnM arch 1 2 , 2 0 0 8 , th e Di s t ri ctCo u rtreco nv en edth e s en ten ci n g p ro ceed in g . Duri n g t h e 2 0 0 8 h eari n g th e Di s t ri ctCo u rts en t en cedp et i t i on er t o fo u r y ears o f p ro b at i o n i n cl u di n g 1 8 m o n t h s o f h o m e d et en t i o n . Th e Di s t ri ct Co u rtn ei t h er m ad e a fi n d i n g o f t h e ex actam o u n t o f t h e t ax l o s s i n v ol v edi n th e
cas e n o r o rd ered fu ll res t i tu t i o n i n th atam o u nt . In s t eadth e Di st ri ct Co u rto rd ered t h atth e ex actam o u nto f res t i tu t i o n wo u l db e d et erm i nedb y th e IRS. Th e Di s t ri ct Co u rtd i rect ed t h at p et i t io n er p ay $ 2 5 ,0 0 0 t o th e IRS i m

m ed iat el y an da fu rt h er- 4
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[* 4 ] $ 1 0 0 ,0 0 0 wi t h i n 9 0 d ay s o f t h e s en t en ci ng h eari n g . OnAp ri l 4 , 2 0 0 8 , th e Di s t ri ctCo u rti s su eda wri tt en ju d g m en tth ats t at edth e ex actam o un to f res t i tu t i o n
was “ t o b e d et erm i n edb y t h e IRS”. Ap p eal an dRem an d OnM ay 2 , 2 0 0 8 , th e USAO ap p eal edth e Di s t ri ct Co u rt ’ s ju dg m en to f
co n vi ct i o n , i n cl u d i ng th e s en t en ce i m p o s edan dth e o rd er o f res t i tu t i o n , t o th e U.S. Co u rto f Ap p eal s fo r t h e Fo u rt h Ci rcu i t . OnJ an u ary 1 3 , 2 0 1 0, t he co u rti s s u edi t s
ru l i n g v acat in g th e en t i re s en t en ce an d rem an d i n g the cas e fo r res en t en ci n g . In t h atru li n g th e Co u rto f Ap peal s co n cl u d ed :

Un d er th es e ci rcu m s t an ces , we can n o td et erm i ne wh eth er t h e s en t en ce i s reas o nab l e wi t h o u ta fu ll er ex p l an at i o n o f t h e reas o ni n g b eh i ndthe d is t ri ctco u rt ’ s v i ew t h ata t erm o f i m p ri s o n m en tas reco m m en d edb y

th e Gu i d el i n es was n o twarran t edan dwh y res t i tu t i o n al o ne wo u l d p ro v i d e ad equ at e d et erren ce i n th i s cas e. Becau s e t he d is t ri ctco u rt ’ s ex p l an at i o n o f i t s d eci s i o n t o v ary s i gn i fi can tl y

fro m th e Gu i d el i n es ’ s en t en ci n g reco m m en d at i o n i s i n s u ffi ci en tt o p erm i t m ean i ng fu l ap p el lat e rev i ew, we m u s tv acat e t h e s en t en ce an drem an dfo r n ew s en t en ci n g fu rt h er p ro ceed i n g s . Un i ted St at es v . En g l e, 5 9 2 F.3 d4 9 5 , 5 0 3 -5 0 4 (4 t h Ci r. 2 0 1 0 ) (ci tat i o n o m i t t ed ). In a fo o t n o t e t o i t s h o l d in g t he Co urto f Ap p eal s s p eci fi cal l y ad dres s edth e Di s t ri ct Co u rt ’ s o rd er o f res t i tu t i o n an ds t at ed :

En g l e’ s fai l u re t o m ak e an y s i g n i fi can tp aym en to n h i s t ax d eb t du ri ng t h e fo ur-y ear p eri o db efo re s en t en ci n g l i k ewi s e rai s es qu es t i o n s ab o u tth e d i s t ri ctco u rt ’ s refu s al t o o rd er fu l l res t i tu t i o n , an- 5
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[* 5 ] o rd er t h atwo u l dcarrywi t h i ts i g n ifi can t b en efi ts fro m th e g o v ern m en t ’ s p ers p ect iv e wi th reg ardt o co l l ect i o n an den fo rcem en t . Onrem an d , th e d i s t ri ctco u rts h o u ldreco n s i d er t h i s i ss u e an d p ro v i d e a m o re d et ai l edex p l an at i o n s h o u ldi tag ai n co n cl u d e t h ata res ti tut i on o rd er i s n otreq ui red
. Id . at5 0 3 n .3 (em

p h as i s ad d ed ). 2 0 1 1 Sen t en ci n g OnM ay 2 3 , 2 0 1 1 , th e Di s t ri ctCo u rth el d a h eari n g t o res en t en ce p et i t i o n er,
an d i ti s su eda wri t t en am en d edju d g m en to n M ay 2 6 , 2 0 1 1 . Th e Di s t ri ctCo u rt
s en t en cedp et i t i o n er t o 6 0 m o nt h s i n carcerat i o n fo l l o wedb y 1 4 m o n t h s o f
s up erv i s edrel eas e. Th e Di s t ri ctCo u rtfu rt h er o rd eredp et i t i o n er t o m ak e
res t itu t i o n t o th e IRS o f $ 6 2 0 ,5 4 9 , wh i ch i t o rd ereddu e an dp ay ab l e i m m ed i at el y . In th e ev en tp et i t i o n er h adn o trep ai d t h e fu l l am o u nto f res ti tu t io n b y t h e s t arto f h i s t erm o f s up erv i s edrel eas e, t h e Di s t ri ct Co u rto rd ered h i m t o p ay $ 5 0 p er
m o nt h b eg i n n i n g 6 0 d ay s aft er t h e s t art o f s up erv i s edrel eas e. In i t s wri t t en
am en d edju d gm en tth e Di s t ri ctCo u rti n d i cat edth atth e reas o n fo r am en d m en twas

“ Co rrect i o n o f Sen t en ce o n Rem an d ”. Nei t h er t h e Go v ern m en tn o r p et i t i o ner ap p eal edth e Di s t ri ctCo u rt ’ s am en d ed ju d g m en t .- 6
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[* 6 ] IRS Co l l ect i on Effo rt s OnM ay 2 6 , 2 0 1 4 , th e IRS m ad e RBAs ag ai n s tp et i t i o n er u nd er s ect i o n 6 2 0 1 (a)(4 ) fo r 1 9 8 4 , 1 98 6 -1 9 9 3 , an d1 9 9 5 -2 0 01 , wh i ch t ot al edth e ex actam o u n t
o f res ti tu t i o n o rd ered b y

the Di s t ri ctCo u rti n i t s 2 01 1 am en d edju d g m en t . Th at
s am e d ay th e IRS m ai l edp et i t i o n er a n o t i ce an dd em an dfo r t h e u np ai dres t i tu t i o n . Ono r ab o u tJ u n e 2 3, 2 0 1 6 , th e IRS fi l ed a Fo rm 6 68 (Y)(c), No t i ce o f Fed eral Tax Li en , ag ai n s tp et i t i o n er wi t h th e Offi ce o f t h e Cl erko f Sup eri or Co u rto f M eck l en b u rg Co u n t y , No rt h Caro l i n a. Onth e s am e d ay th e IRS s en tp et i t i o n er an NFTL, wh i ch i n d i cat edth atp et i t i o n er o wed$ 2 , 7 8 4 ,1 6 6 .9 5 , rep res en t i n g th e t o t al
am ou n to f t h e RBAs , s t atu t o ry i n t eres t , an d ad d it i o n s t o t ax . Th e NFTL al s o
s t at edth atp et i t i on er co ul d ap p eal th e p ro p o s edco l l ect io n act i o n b y req u es t i n g a
co l l ect i o n du e p ro ces s (CDP) h eari n g u n d er s ect i o n 6 3 2 0 b y Au g us t1 , 2 0 1 6
. CDP Heari n g Pet i t i o ner’ s au t ho ri zedrep res en t at i v e t i m el y s ub m i t t eda Fo rm

1 2 1 5 3 , Req ues t fo r a Co l l ect i o n Du e Pro ces s o r Equ i v al en tHeari n g , wi th res pect t o th e NFTL. Pet i t i o n er’ s rep res en t at i v e ch eck edth e b o x o n th e Fo rm 1 21 5 3 i n d i cat i n g t h atp et i t i o n er was u nab l e t o p ay the b al an ce o f h i s l i ab i l i t i es an d t h ath e wo u l d l i ke t o d i s cu s s co l l ect i on al tern at i v es . Hi s rep res en t at i v e al s o s t at edth e fo l l o wi n g :- 7
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[* 7 ] M an g er’ s [s i c] Co n feren ce req u es t edt o res o l v e t h i s i s s ue p ri o r t o Ap p eal s req u es t ; n o res p o n s e. Th e t ax y ears l i s t edo n th e t ax p ay er’ s l i en s (at tach ed ) are ei t h er (1 ) t ax y ears fu l l y d is ch arg eab l e i n t h e t ax p ay er’ s CH 7 BK, o r (2 ) i n cl u d e t ax y ears th atare NOT t h e BASIS o f t h e t ax pay er’ s cu rren tFed eral Res t itu t i o n Ord er. Tax p ay er o n l y p l ed g u i lt y

fo r o n e t ax y ear, 1 9 9 9 [s i c] * * *
. Th ere i s NO ad ju di cat i o n as t o th e o t h er t ax y ears l i s tedo n th e l i en . Pet i t i o ner’ s cas e was as s i g n edt o an Ap p eal s s et t l em en to ffi cer (SO) wh o
s ch edu l eda CDP h eari n g fo r p et i t i o n er. Befo re t h e CDP h eari n g , p et i t i o ner’ s rep res en t at i v e s en tth e SO t wo l et t ers , the fi rs to n o r ab o u t J an u ary 3 1 , 2 0 1 7 , an d t h e s eco n do n o r ab o u t Feb ru ary 5 , 2 0 1 7. Bo t h l et t ers el ab o rat edo n p et i t i o n er’ s arg u m en tth atth e Co u rto f Ap p eal s d i d n o trev ers e an drem an dth e Di s tri ct Co u rt ’ s 2 0 0 8 res t i tut i o n o rd er an dco n s equ en t l y th ato rd er p red at es th e IRS’
au t h o ri t y t o m ak e RBAs u n d er FETIA. On Feb ru ary 6 , 2 0 1 7 , th e SO co ndu ct eda t el ep ho n e CDP h eari ng wi t h p et i t i on er’ s rep res en t at i ve. Du ri n g th i s h eari n g p et i t i o n er’ s rep res en t at i ve rei t erat edth e arg u m en t s m ad e i n h i s l et ters . No t ice o f Det erm i n at i o n Fo l l owi n g th e CDP h eari n g th e SO s u s t ai n edth e d et erm i n at i o n . In d et erm i n i n g th atth e l i en fi l i n g s h o u l db e s u st ai n ed , the SO m ad e, i n t er al ia, t h e fo l l o w i n g co n cl u s i o n s : (1 ) a t ax p ay er can n o tch al l en g e th e am o u n t o f co urt o rd eredres t i tu ti o n i n a CDP h eari n g , (2 ) b ecau se t h e Co u rto f Ap p eal s v acat edth e Di s t ri ctCo u rt ’ s s en t en ci n g o rd er t he 2 00 8 res t itu t i o n o rd er was ren d ered v o i d ,- 8
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[* 8 ] m ean i n g the u lt i m at e res t i tu t i on o rd er was th e am en dedju dg m en t i m po s edi n M ay 2 0 1 1 , (3 ) i n t eres twas p ro p erl y as s es s edo n th e RBAs , (4 ) a l i en wi th drawal
was n otap pro pri at e, an d(5 ) t h e p ro p er l eg al an d p ro cedu ral req u i rem en ts h ad b een m eti n the as s es sm en t an d co l l ect i o n o f t h e res t i tu t i o n . Ap p eal s s en t p et i t i o n er a n o t i ce o f d et erm i n at i o n co n cern i ng co l l ect i o n act i on (s ) u n der s ect i o n 6 3 2 0 an d/ o r 6 3 3 0 , fo r t h e NFTL, d at edJ u ne 2 1 , 2 01 7
. Wh en Ap p eal s s en tth es e
n o t i ces o f d et erm in at i o n , Kl ei n h adn o tb een d eci d ed
. Di s cu ss i o n Pet i t i o ner co n ten d s th at : (1 ) t h e 2 0 0 8 res t i tu ti o n o rd er was n ei t h er v acat ed
n o r v oi d edb y t h e l at er J an u ary 1 3 , 2 0 1 0 , d eci s i o n b y

the Co u rto f Ap p eal s an di t s
am en d edju d gm en t , (2 ) t h e Co u rto f Ap p eal s d eci s i o n v acat edan dv o id edo n l y
s en t en ci n g as t o p et i t i o n er, (3 ) t h e res p o n d en terred i n ap pl y i n g FETIA t o p et i t i o n er’ s M ay

2 0 1 1 am en d edju d g m en t , wh i ch d i dn o tm o d i fy th e 2 0 0 8
res t itu t i o n o rd er, an d(4 ) b ecau s e t h e 2 0 0 8 res t i tu ti o n o rd er rem ai n edu n d i s tu rb ed i t pred at es th e effect i v e d at e o f res po n d en t ’ s au t ho ri t y t o m ak e RBAs u n d er
s ect i on 6 2 0 1 (a)(4 ). Sect io n 6 3 2 1 i m

p os es a l i en i n fav or o f t he Un i t edSt at es o n al l p ro pert y an d p ro p ert y ri g h t s o f a t ax p ay er l i ab l e fo r t ax aft er a d em an d fo r t he p aym en to f t h e t ax h as b een m ad e an dth e t ax pay er fai l s t o p ay . Th e l i enari s es wh en th e- 9
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[* 9 ] as s es s m en t i s m ad e. Sec. 6 3 2 2 . Th e IRS fi les a n ot i ce o f Fed eral t ax l i en t o p res erv e p ri o ri t y

an d p u to t h er cred i to rs o n n ot i ce. See s ec. 6 3 2 3
. Sect i o n 6 3 2 0(a) req u i res t h e Secret ary

t o s en dwri t ten n o t i ce t o t h e t ax p ay er o f t h e fi l in g o f a
n o t i ce o f l i en an do f th e t ax p ay er’ s ri g h tt o an ad m in i s t rat iv e h eari ng o n th e
m at t er. Pet i t io n er req u es t edan dwas g ran t eda CDP h eari ng . CDP h eari n g s g en eral l y

s h al l b e co ndu ct edco n s i st en twi t h p ro cedu res s et fo rt h i n s ect i o n 6 3 3 0 (c), (d ), (e), an d(g ). Sec. 6 3 20 (c). Sect i o n 6 3 30 (c) s p eci fi es t h e m at t ers t o b e co n s i d ered ata CDP h eari n g , i n cl u d i n g v eri fi cat i o n thatth 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 in i s t rat iv e p ro cedu re h av e b een m et , ch al l en g es t o t h e ap p ro p ri at en es s o f co l l ect i o n act i o n s , an do ffers o f co l l ect i o n al t ern at i v es . Th e t ax p ay er m ay rai s e atth e h eari n g an y

rel ev an ti s su es rel at i n g t o t h e u npai dt ax o r t h e p ro p o sed l ev y . Ho wev er, “ [a] t ax p ay er i s s t ri ct l y p ro h i b i t ed fro m ch al l en g i n g t h e ex i s t en ce o r am ou n t o f an u n d erl y i n g t ax l iab i l i t y th ati s rel at ed t o an o rd er o f cri m i n al res t i tu t i o n.” Carp en t er v . Co m m i s s i o n er, 1 5 2 T.C. 2 0 2 , 2 1 9 (2 0 1 9) (ci ti n g s ect i o n 6 20 1 (a)(4 )(C)), aff’ d , 7 8 8 F. Ap p ’ x 1 87 (4 t h Ci r. 2 0 1 9 ). Becau s e p et i t i o n er i s p recl u d edfro m rai si n g t h e i ss ue o f h i s u n d erl y i n g t ax l i ab i l i t i es , th e Co u rtrev i ews th e IRS’ d et erm i n at i o n fo r ab u s e o f d is cret i o n . See i d . at2 2 0 -2 2 1 ; Kl ei n v . Co m m i s s i o n er, 1 4 9 T.C. at3 48 ; Seg o v . Co m m i s s i o n er,- 1 0 -

[* 1 0 ] 1 1 4 T.C. 6 0 4 , 6 1 0 (2 0 0 0 ); Go za v . Co m m i s si o n er, 1 1 4 T.C. 1 7 6 , 1 8 2 (2 0 0 0). To es t ab li s h an ab u s e o f d i s cret io n , th e t ax pay er m u sts h o wth at t he d eci s i o n co m

p l ai n ed o f i s arb i t rary , cap ri ci o u s , o r wi th o uts o u n db as i s i n facto r l aw. Gi am el l i v . Co m

m is s i o n er, 1 2 9 T.C. 1 0 7 , 1 1 1 (2 0 0 7 ) (ci t i n g W o o dral v . Co m m i s s i o n er, 1 1 2 T.C. 1 9 , 2 3 (1 9 9 9 )). Where a d et erm i n at i o n b y Ap p eal s i s p red i cat ed upo n an erro r o f l aw, thatd et erm i n at io n co n s t i tu t es an ab u s e o f d i s cret i o n . Al es s i o Azzari , In c. v . Co m m i s s i on er, 1 3 6 T.C. 1 7 8 , 1 91 (2 0 1 1 ); Swan s o n v . Co m

m i s si o ner, 1 2 1 T.C. 1 1 1 , 1 1 9 (2 0 0 3 ) (ci t i n g Co o t er & Gel l v . Hart m arx Co rp ., 4 9 6 U.S. 3 8 4, 4 0 5 (1 9 9 0 ) (ab u s e o f d i scret i o n o ccu rs i f ru l i n g
was b as edo n erro n eo u s v i ew o f t h e l aw)); s ee al s o Ken dri ck s v . Co m m i s s i o n er, 1 2 4 T.C. 6 9 , 7 5 (2 0 0 5 ) (“ Wh eth er ch aract eri zed as a rev i ew fo r ab u s e o f d is cret i o n
o r as a co n s i derat io n ‘ d e n o v o ’ (o f a qu es t i o n o f l aw), we m u s t reject erro n eo u s
v i ews o f t h e l aw.”). Th e IRS can m ak e a res t i tu t io n -b as edas s es s m en t o n l y t o th e ex t en t
au t h o ri zedb y

s ect i o n 6 2 0 1 (a)(4 )(A). Th ats ect i o n p ro v i d es th at t he Secret ary

“ s h al l as s es s an dco l l ectthe am o u n to f res t i tu t i o n u n der an o rd er p u rs u an tt o
s ect i on 3 5 5 6 o f t i tl e 1 8, Un i t edSt at es Co d e, fo r fai l u re t o p ay an y t ax i m p os ed
u n d er t h i s t i t l e [t i t l e 2 6 ] i n th e s am e m an n er as i f s u ch am ou n t were s u ch t ax .” Th e Secret ary ’ s co l l ect i o n au t h o ri t y u n der s ect i o n 6 2 0 1 (a)(4 ) ap p l i es o n l y t o- 1 1 -

[* 1 1 ] cri m i n al res ti tu t i o n o rd eredaft er Au g u s t1 6 , 2 0 1 0 . See FETIA s ec. 3 (c), 1 2 4 St at . at 2 49 8 . Th e p art i es d o n o td is p ut e t h at s uch a res t itu t i o n o b l i g at i on i s at i s su e i n t h i s cas e; h o wev er, t h ey d i s ag ree as t o wh ether t h e res t i tu t i on was o rd ered aft er t h e effect i v e d at e o f s ect i o n 6 2 0 1 (a)(4 ). Th e cru x o f t h e d i s p u t e i s wh et h er t h e Co u rto f Ap p eal s i nt en d edt o i n cl u de t h e 2 0 08 res t itu t i o n o rd er i n it s m an d at e t o the Di s t ri ctCo u rtwh en i trev ers edan d
rem an dedp et i t i o n er’ s s en t en ce. Iti s wel l s et t l edth atth e m an dat e o f a h i gh er
co u rti s “ co n t ro l l i n g as t o m at t ers wi t h in i t s co m p as s ”. Sp rag u e v . Ti co n i c Nat ’ l Ban k, 3 0 7 U.S. 1 61 , 1 6 8 (1 9 39 ). “ [I] t i s i n d i s p u t ab l e t h ata l ower co u rtg en eral l y i s ‘ b o un dt o carryth e m an d at e o f t h e upp er co u rti n t o ex ecu t i o n ’ ”. Un it ed St at es
v . Bel l , 5 F.3 d 6 4 , 6 6 (4 th Ci r. 1 9 93 ) (qu o t in g Sp rag u e, 3 0 7 U.S. at1 68 ). “ [W ] h en
* * * [a h i g h er] co u rtrem an d s fo r fu rt h er p ro ceed i ng s , a d is t ri ctco u rtm u s t, ex cep t i n rare ci rcu m s t an ces , ‘ “ i m pl em en tb o t h t he l et t er an ds p i ri to f t h e . . . m an d at e, t ak i n g i n t o acco u n t [o u r] o p i ni o n an dth e ci rcu m s tan ces i t em b races .”’ ” Id . at6 6 (t hi rdan dfo u rt h al t erat i o n s i n o ri g i n al ) (qu o t i n g Un i t edSt at es v . Bel l , 9 8 8 F.2 d 2 4 7 , 2 5 0 (1 s tCi r. 1 9 9 3)). In th i s cas e t h e Go v ern m en tap peal edth e Di s t ri ctCo u rt ’ s ju d g m en to f
co n vi ct i o n i n cl u d i n g th e s en ten ce i m p o s edan d t h e o rd er o f res t i tu t i o n t o th e Co u rt
o f Ap peal s . Th e Co u rto f Ap p eal s co n s i d eredb o t h p et i ti o n er’ s effo rt s t o m ak e- 1 2 -

[* 1 2 ] res t i tu t i o n b efo re s en ten ci n g an dth e Di st ri ctCo u rt ’ s reas on i n g fo r i m p o s i ng a l es s er s en t en ce o f i n carcerat io n i n fav or o f p et i t io n er’ s m ak i n g res ti tu t io n . Th e Co u rto f Ap p eal s co n cl u d edth atth e Di s t ri ctCo u rt ’ s ex p l an at i o n o f i t s d eci s i o n
was i n s u ffi ci en t t o p erm i t m ean i n g fu l ap p el l at e rev i ew. As a res u ltth e Co u rto f Ap p eal s v acat edp et i t i o n er’ s en t i re s en t en ce an drem an d ed“ fo r n ew s en t en ci n g [an d ] fu rt h er p ro ceed i n g s . ” En g l e, 5 9 2 F.3 dat5 0 4 . Ind o i n g s o th e Co u rto f Ap p eal s i n cl u d eda fo o t n o t e s t at i n g t h at“ [o ] n rem an d, t he d i s t ri ctco u rts h o u l d
reco n s i d er * * * [t h e i s s u e o f res t i tu t i o n ] an dp ro vi d e a m o re d et ai l edex p lan at i o n
s h o u ldi tag ai n co n cl ud e t h ata res t i tu t i o n o rd er i s n otreq u i red .” Id
. at5 0 3 n .3
. W e co n cl u d e t h at t h e Co u rto f Ap p eal s ex p res s ly i n t en d ed t o i n cl u d e t h e 2 0 0 8
res t itu t i o n o rd er i n i t s d eci s i o n t o v acat e an d rem an dp et it i o n er’ s s en t en ce. Th i s d eci s i o n ren d ered t h e 2 0 0 8 res t i tu t i o n o rd er n u l l an dv oi d
. Co n si s t en t wi t h th e Co u rto f Ap peal s m an d at e, t h e Di s tri ctCo u rt
reco n s i d ered t h e am o u n t o f res t i tu t i o n o w edan di s s u eda n ew res t i tu t i o n o rd er wi t h i t s M ay

2 0 11 am en d edju dg m en t . Acco rd i n gl y , th e d at e o f t h e M ay 2 0 1 1
res t itu t i o n o rd er co nt ro l s fo r t h e p urp o s es o f d et erm i n i n g wh et h er s ect i o n 6 2 0 1 (a)(4 ) ap p l i es . Th e M ay 2 0 1 1 res t i tu ti o n o rd er was i m p o s edaft er th e effect i v e d at e o f s ect i o n 6 2 0 1(a)(4 ) s p eci fi edu n d er FETIA. Th e SO’ s co n cl u s i o n t h atth e RBA was n o ti n erro r an dh i s d et erm i n at i on t o s us t ai n t h e NFTL fi l i n g- 1 3 -

[* 1 3 ] were n o tan ab us e o f d i s cret i o n . Ex cep t wi t h res pect t o th e co n ced ed
am ou n t s o f i n t eres tan dad d i t i o n s t o t ax , we s u s t ai n t h e IRS NFTL fi l i n g i n s o far as t h e am o un t s d o n o tex ceed t h e am o u n t o f cri m i n al res t i tu t i o n . W e h av e co n s id ered al l o f t h e p art i es ’ arg u m en t s an d , t o th e ex t en tn o t d i s cu s s edab o v e, co n cl u d e t h atth o s e arg u m en ts are i rrel ev an t , m o ot , o r wi t h o u t
m eri t . To refl ectth e fo reg o i ng , Anap p ro p ri at e d eci s i o n wi l l b e en t ered
.