T.C. Mem o. 2 01 5- 17

UNITED STAT ES TAX COURT TIMOTHY FREDERICK WITMYER, Peti ti on er v . COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 41 38 -1 4L. Fi le d J anuary 22 , 20 15 . Tim ot hy Frede ric k Witm y er, p ro se. Eli zab eth C . Mo ur ge s, fo r res po nd en t.

MEMORANDUM OPINION RUWE , Ju dg e: Thi s m at te r is be fo re the Co urt o n re sp on de nt ’s m ot io n fo r su m m ary jud gm en t p ur su an t t o R ul e 1 21 . Res po nd en t co nt en ds th atno ge nu in e

1

Unl es s o th erwi se in di cat ed , all Ru le refe ren ces are t o the Tax C ou rt R ul es 1 of Prac ti ce an d P ro cedur e, an d a ll sec ti onrefe ren ces are t o the Int ern al Rev enue Co de ineffe ctat a ll rel ev an t t im es .- 2 -

[* 2] di sp ut e ex is ts as t o any m at eri al factan d tha t the de te rm in at io n t o c ol le ct pe ti ti on er’s i nc om e ta x l iabi li ti es by lev y sh ou ldbe up he ld . Peti ti on er h as no t res po nd edto th e m ot io n d es pi te anord er fro m th is Co urt i ns tru ct in g h im to do so . 2 Bac kg ro un d At the ti m e th e p et it io n was fil ed , pet it io ne r res id edinMarylan d. Pet it io ne r di d n otfil e h is 20 07 an d 2 00 8 F ed eral in co m e ta x re tu rn s. Res po nd en t p rep aredsubs ti tu te s fo r returns (SFRs ) fo r th e ta xabl e y ears 20 07 an d 20 08 (y ears at i ss ue ) in acco rd an ce wi th hi s au th or ity to do so un de r se ct io n 60 20 (b ). Res po nd en t m ai le d t o p et it io ne r a n ot ic e o f de fic ie nc y forth e y ears at is su e. Pet it io ne r di d n otfil e a p et it io n c ha ll en gi ng th e n ot ic e o f de fic ie nc y . Res po nd en t as se ss edth e ta x re po rte d o n the returns as we ll as a dd it io ns to tax un de r se ct io ns 66 51 (a)( 1) an d (2 ) an d 6 65 4. Res po nd en t s en t p et it io ne r a Let te r 10 58 , Fin al Not ic e o f In te ntto Levy and Not ic e o f Your Ri gh t t o aHeari ng , dat edJu ne 4, 2 01 3, advi si ng pe ti ti on er tha t res po nd en t i nt en de d t o l ev y to co ll ectunpa idtax li ab il it ie s fo r th e y ears at i ss ue an d tha t h e co ul d re qu es t a h eari ng with the Int ern al Rev enue Serv ic e (IR S) Offi ce of App eal s. On Dec em

be r 4, 2 01 4, the Co urt o rd eredpe ti ti on er t o fi le a res po ns e o n o r 2 be fo re Dece m

be r 29 , 20 14 . No res po ns e was fil edby pet it io ne r.- 3 -

[* 3] Pet it io ne r subm it te d t im el y a Fo rm 12 15 3, Re qu es t fo r a Co ll ect io n Du e Pro ces s o r Equ iv al en t Hearin g, i n wh ic h h e d idno t co nt es t h is un de rlyin g t ax li ab il it ie s b utin st eadreque st edanin st al lm en t ag reem en t. By let te r da te d Au gu st29 , 20 13 , an I RS s ettl em en t o ffi cer a ckno wled ge d rece ip t o f pe ti ti on er’s Fo rm 12 15 3 andsch edul eda co ll ect io n due pro ces s (C DP) he ari ng vi a te le ph on e fo r Oct ob er 3 , 20 13 . In the let te r th e se tt le m en t o ffi cer reque st edth atpe ti ti on er p ro vi de a co m pl et edFo rm

43 3- A, Col le ct io n In fo rm at io n St at em en t fo r W ag e Earn ers an d S el f-Em pl oyed In di vi du al s, s o tha t s he co ul d m ak e a d eci si on reg ard in g p et it io ne r’s reque stforanin st al lm en t ag reem en t. The le tt er al so st at edth atpe ti ti on er h adno t fi le d F ed eral in co m e ta x re tu rn s fo r th e y ears 20 09 , 20 10 , 20 11 , and20 12 an d tha t h e m us t p ro vi de to th e se tt le m en t of fic er co pi es of s ig ne d fi le d re tu rn s fo r th es e y ears . By let te r da te d Oct ob er 2 2, 2 01 3, the set tl em en t o ffi cer r es ch edul edth e CDP h eari ng with p et it io ne r fo r Nov em be r 14 , 20 13 . On No ve m be r 14 , 20 13 , 3 pe ti ti on er’s s po us e cal le d the set tl em en t o ffi cer f orth e sc he du le d t el ep ho ne

The CDP h eari ng was re sc he du le d o n a cco un t o f th e Fed eral Gov ern m en t 3 sh ut do wn.- 4 -

[* 4] co nf eren ce ca ll . Duri ng th e co nf eren ce ca ll th e se tt le m en t o ffi cer i nf orm ed 4 pe ti ti on er’s s po us e th atsh e co ul d n otco ns id er anin st al lm en t ag reem en t u nl es s pe ti ti on er s ub m itte d the Fo rm 43 3- A andco pi es of h is fil edtax returns for 20 09 -1 2. Th e se tt le m en t o ffi cer n ev er rec ei ve d fr om pe ti ti on er the Fo rm

43 3- A or th e reque st edreturns for20 09 -1 2. Res po nd en t i ss ue d p et it io ne r a No ti ce o f Det erm in at io n C on cern in g Co ll ect io n Act io n( s) Und er Se ct io n 6 32 0 and/o r 63 30 , dat edJan ua ry 24 , 20 14 , de nyin g p et it io ne r’s reque st edco ll ect io n a lt ern at iv e an d s us ta in in g the pro po se d co ll ect io n a ct io n. Pe ti ti on er t im el y fil eda pe ti ti on with thi s C ou rt. Dis cu ss io n Su m m ary jud gm en t i s i nt en de d t o e xp ed it e li ti ga ti on an d t o avo id un ne ces sary

an d e xp en si ve tri al s. Sh io sa ki v. Co m mis si on er, 6 1 T.C. 8 61 , 86 2 (1 97 4) . Summ ary jud gm en t m ay be gra nt edwher e th e p le ad in gs an d o th er m at eri al s s ho w th atth ere i s n o g enui ne di sp ut e as to an y m at eri al factan d tha t a de ci si on m ay

be ren de redas am at te r of law. Ru le 12 1( a) an d (b ); S un ds tra nd Co rp . v. Co m

m is si on er, 9 8 T.C. 5 18 , 52 0 (1 99 2) , aff’d, 1 7 F .3d96 5 (7 th Cir . 19 94 ). The b ur de n i s o n the m ov in g p arty to de m on st rat e th atno ge nu in e d is pu te Pet it io ne r co ns en te d t o the set tl em en t o ffi cer s pe ak in g wi th hi s s po us e 4 ab ou t the cas e.- 5 -

[* 5] as to an y

m at eri al factrem ai ns an d tha t h e is en ti tl edto jud gm en t as a m at te r of law. FPL Grp ., Inc . & Subs . v. Co m m is si on er, 1 16 T.C. 73 , 74 -7 5 (2 00 1) . In al l ca se s, the ev id en ce i s v ie wedinth e li gh t m os t fa vo rab le to th e n on m ov in g pa rty. Bon d v . Comm is si on er, 1 00 T.C. 32 , 36 (19 93 ). Howev er, the no nm ov in g pa rty is re qu ire d “ to go be y on d the pl ead in gs an d b y * * * [h is ] ownaffi da vi ts , or by the ‘ de po si ti on s, an swe rs to in te rro ga to rie s, an d a dm is si on s o n fi le ,’ de si gn at e ‘spe ci fic fact s s ho win g tha t the re i s a g enui ne is su e fo r tr ia l.’” Cel ot ex Co rp . v. Catret t, 4 77 U.S. 31 7, 3 24 (19 86 ); s ee al so Rau en ho rs t v . Comm is si on er, 1 19 T.C. 15 7, 1 75 (20 02 ); F PL Grp., In c. & Subs . v. Co m m is si on er, 1 15 T.C. 55 4, 5 59 (2 00 0) . Desp it e o urord er tha t p et it io ne r fi le a res po ns e to res po nd en t’s m ot io n fo r su m m ary jud gm en t, h e fai le d t o re sp on d t o the m ot io n andha s fa il edto de m on st rat e th atth ere i s a g enui ne di sp ut e fo r tr ia l. Con se qu en tl y , we con cl ud e 5 th atth ere i s n o d is pu te as t o any m at eri al factan d tha t a d eci si on m ay be ren de red as a m atte r of

law. Sect io n 6 33 1( a) p ro vi de s tha t i f an y pe rs on li ab le to pay

an y tax ne gl ect s o r refu se s t o p ay

su chtax withi n 1 0 d ay s af te r no ti ce an d d em an d fo r pa y m en t, the n By fai li ng to res po ndto th e as se rti on s i n the m ot io n, p et it io ne r ha s wai ve d 5 hi s ri gh t t o c on te stth em . See Ru le 12 1( d) ; Luns fo rdv. Co m m is si on er, 1 17 T.C. 18 3, 1 87 (20 01 ); Ak on

ji v . Comm is si on er, T.C. Mem o. 2 01 2- 56 , 20 12 Tax C t. Mem o LEXIS 4 9, at*6 .- 6 -

[* 6] th e Sec ret ary is au th or iz edto co ll ectsu chtax by lev y up on th e p ers on ’s pr op erty . Sect io n 6 33 1( d) pro vi de s tha t, atlea st30 day s b efo re en fo rci ng co ll ect io n b y

way of alev y onth e p ers on ’s pro pe rty, the Secr et ary is ob li ga te d t o pr ov id e th e p ers onwith afin al no ti ce o f in te ntto lev y , in cl ud in g n ot ic e o f th e adm in is tra ti ve ap pe al s av ai labl e to th e p ers on . If a ta xp ay er re qu es ts a CDP he ari ng , he m ay

rai se at tha t h eari ng an y

rel ev an t i ss ue rel at in g t o the unpa idtax orpro po se d l ev y . Sec. 6 33 0( c)(2 ). Rel ev an t i ss ue s i nc lu de po ss ib le alt ern at iv e m ean s o f co ll ect io n s uc h a s an in st al lm en t ag reem en t. Sec . 63 30 (c)( 2) (A)(i ii ). If a t ax pa y er’s und erl y in g l iabi li ty is p ro pe rly at is su e, th e Co urt re vi ews an y de te rm in at io n re gard in g the un de rlyin g l iabi li ty de n ov o. Go za v . Co m m is si on er, 1 14 T.C. 17 6, 1 81 -1 82 (20 00 ). Pet it io ne r ha s the bu rd enof p ro of reg ard in g h is un de rlyin g t ax li ab il it ie s. See Ru le 14 2( a). A tax pa y er i s p recl ud ed fro m di sp ut in g the un de rlyin g l iabi li ty if itwas n otpro pe rly rais edinth e CDP he ari ng . See Gia m el li v. Co m mis si on er, 1 29 T.C. 10 7, 1 14 (20 07 ). Res po nd en t is su eda no ti ce o f de fic ie nc y onth e b as is of t he SFRs pre pa redby resp on de nt . In hi s p et it io n, p et it io ne r rai se d que st io ns ab ou t h is un de rlyin g t ax li ab il it ie s b utdi d no t fi le returns forth e y ears at i ss ue . Neithe r pe ti ti on er n orhi s s po us e rai se d the un de rlyin g l iabi li ti es durin g the CDP h eari ng . Con se qu en tl y , pet it io ne r’s 20 07 an d 2 00 8 t ax li ab il it ie s ar e n otpro pe rly befo re the Co urt.- 7 -

[* 7] The Co urt re vi ews adm in is tra ti ve de te rm in at io ns by the IRS’ Offic e o f App eal s re ga rd in g n on li ab il ity is su es forab us e o f di sc ret io n. Ho y le v. Co m m is si on er, 1 31 T.C. 19 7, 2 00 (20 08 ); Go za v . Comm is si on er, 1 14 T.C. at 1 82 . The de te rm in at io n o f th e Offi ce o f App eal s m us t t ak e in to co ns id erat io n: (1) th e ve rif ic at io n tha t the requi rem en ts of app li cab le law an d a dm in is tra ti ve pro cedur e ha ve be enm et ; (2 ) is su es rai se d b y th e ta xp ay er; an d (3 ) whe th er an y pro po se d co ll ect io n a ct io n b al an ces th e n eedforth e eff ic ie ntco ll ect io n o f ta xe s wi thth e le gi ti m at e co nc ernof t he pe rs on th atan y co ll ect io n b e n o m or e in tru si ve th an ne ces sa ry . Sec. 6 33 0( c)(3 ); s ee Luns fo rdv. Co m m is si on er, 1 17 T.C. 18 3, 1 84 (2 00 1) . The s et tl em en t o ffi cer p ro pe rly bas edhe r de te rm in at io n o n the fact or s requi redby sect io n 6 33 0( c)(3 ). Pet it io ne r reque st edanin st al lm en t ag reem en t as analt ern at iv e m ean s o f co ll ect io n. Durin g the CDP h eari ng th e se tt le m en t o ffi cer i nf orm edpe ti ti on er’s sp ou se th atpe ti ti on er m

us t s ub m ita Fo rm

43 3- A andtax returns for20 09 -1 2 i n or de r fo r anin st al lm en t ag reem en t t o b e co ns id ered . Res po nd en t co nt en ds th atth e se tt le m en t o ffi cer d idno t ab us e h er d is cret io n i n d en y in g p et it io ne r’s reque stfor anin st al lm en t ag reem en t b ecau se pe ti ti on er d idno t s ub mitth e reque st ed do cu m en ta ti on .- 8 -

[* 8] Pet it io ne r fai le d t o s ub m itth e reque st edFo rm 43 3- A andco pi es of h is fil ed 20 09 -1 2 t ax returns . It was no t an ab us e o f di sc ret io n fo r th e se tt le m en t o ffi cer t o de ny an i ns ta ll m en t ag reem en t an d t o s us ta inth e p ro po se d c ol le ct io n a ct io n o n the ba si s o f pe ti ti on er’s fai lu re t o s ub m itth e reque st edfin an ci al in fo rm at io n. Ca va zo s v. Co m m is si on er, T.C. Mem o. 2 00 8- 25 7, 2 00 8 Tax Ct. M em o LEXIS 2 56 (h ol di ng th atitis no t an ab us e o f di sc ret io n fo r a s et tl em en t o ffi cer t o re ject a co ll ect io n a lt ern at iv e an d s us ta ina pr op os edco ll ect io n a ct io n o n the ba si s o f th e ta xp ay er’s fai lure t o s ub m itreque st edfin an ci al in fo rm at io n o r hi st or ic al no nc om pl ianc e with t ax laws ). W e h ol d tha t the de te rm in at io n t o p ro ceedwith c ol le ct io n was no t an ab us e of th e se tt le m en t o ffi cer’s d is cret io n, an d the pro po se d c ol le ct io n a ct io n i s su st ai ne d. To re fle ctth e fo reg oi ng , An ap pr op ria te ord er wi ll be is su edgra nt in g re sp on de nt ’s m ot io n, an d d eci si on wil l b e en te redfor res po nd en t.