TAX COURT OPINION

Case: Kevin M. Igoe & Ellen Cutler Igoe
Docket Number: 6092-10L
Judge: Goeke
Opinion Type: bench
Filed: 10/02/2011
Pages: 6

UNITED STATES TAX COURT WASHlNGTON, DC 20217 KEVIN M. IGOE, IGOE AND ELLEN CUTLEl petitioner v. . COMMISSIONER OF .INTERNAL REVENUE, Re spondent ) ) ) ) ) ) ) ) O R D E R Docket No. 6092-1ÓL. Pursuant to Rule 152 (b) , Tax Court Rules of Practice and Procedure, it is ORDERED . that the Clerk of the Court shall transinit herewith to Petitioners and to respondent a copy of the pages of the transcript of the trial in the above case before Judge Joseph Robert Goeke at idestbury at New York, New York, on Septeinber 19, 2011, containing his oral findings of fact and opinion rendered at the conclusion of the trial. In accordance with the oral findings of fact and opinion, the reinanded to respondent's Appeals Office and an case will be appropriate.Order will be issued. (Signed) Joseph Robert Goeke Judge Dated: Washington, D . C. October 2 . 2011 SERVED OCI f2 2011 'WFilf!BIPnlWUHWtlP71!Ilml'i1YllllllilFr' I lyRifl!!1rly ||441!P' Fillirrillyll!il' 'T'uli i i !nrru' 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 Bench opinion By Judge Joseph Robert Goeke Septembér 19, 2011 Kevin M. Igoe & Ellen Cutler Igoe v. Commissioner Docket No. 6092-10L THE COURT: The Court has decided to render oral firdings of fact and opinion in this case and the followirg represents the Court's oral findings of fact and opinion. . The oral findings of fact and opinion shall n t be relied upon .as precedent in any other case. References to sections in this opinion are to the Iinternal Revenue Code and rule references are ·to the Tax Court Rules of Practice and Procedure. This opinion is rendered pursuant to the aut-hority granted in Section 7459 (b) of the Internal Revenue Code and Rule 152 . The Court has jurisdiction over the present matter pursuant to Section 6330 (d) (1) . This is a case where we are to review Respondent ' s attempts to collect income tax liabilities through use of a lien filing. The liabilities are not before us. Section 6201. authorizes the assessment of tax. And Section 6303 requires that the Respondent mail notice and demand for payment to the taxpayer Heritage Reporting Corporation (202) 628-4888 4 after the ·assessment. Section 6321 provides for a statutory lien when a t-axpayer neglects or refuses to pay a tax liability after notice and demand of payment. Section 6320 requires notification of the taxpayer subsequent to the filing of the notice of federal tax lien and provides the taxpayer with the right to request a hearing with a settlement officer . in the Eppeals division to discuss collection and liability issues. The taxpayers ïn the present case received such a r.otice and timely sought a hearing. After the hearing process, the settlement officer issued a notice of determination sustaining the lien ,filing and the taxpayer has timely petitioned this Court pursuant .fo their right to do so under Section 6330. Our determination is based upon the review of the collection action and the notice of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19. determiration issued by the settlement officer for 20 21 22 23 24 25 abuse of discretion. Certain facts have been stipulated and the stipulated facts are made a part of this opinion by this reference. The Petitioners resided in New York when the petitior was filed in this case. This collection action initially involved Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 5 joint i1come tax liabilities and additions to tax for 2004, 2(05 and 2006. The liabilities before interest were rotghly $8,000 for 2004; $20,000 for 2005; and $14,000 for 2006. Subsequently, the settlement officer became aware of an additional liability which was assessed in May 2009 for the year 2006. The settlement officer held a conference with the Petitioners in August 2009, at which time the Petitioners made a payment of $20.,000 of the tax liabilities involved in the collection action. The settlement officer.requested a collection information.statement from the Petitioners at that time. The Petitioners submitted a Form 433-F containing collection information in October 2009. The ever.ts after that form was submitted are disputed and not cl.early presented in the administrative record. Based upon the testimony at trial, we find the set lement officër's vacation caused at least, in part, a ·interruption of the communications about the Form 43 -F submitted by the Petitioners, and about the Petitio ers' request for an.installment agreement after s me of the taxes for the years before the settlement officer would be removed from the lien filing based upon the Petitioners' payments. Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Given the interruptions in the parties ' efforts to resolve this case in. the administrative process and the. evidence of the Petitioners' good faith established by their substantial payments, we find there was an abuse of discretion by the settlement officer in..not providing the Petitioners a face-to- face meeting to resolve .any problems with Petitioners' effort to obtain an installment agreement in early 2010 . Such a meeting should have been. held before the notice of determination was issued. And the issuance of the notice of determination before holding such a meeting evidences the lack of a proper ef fort to. weigh the collection action versus the intrusive .15 effects of a collection action upon the Petitioners. 16 17 18 19 20 21 22 23 24 25 We note again that the Petitioners made a payment in August of 2009 in the amount of $20, 000 and then made another payment in September of .2009 in the amount of $17, 6 75 . We believe this case should be remanded to the appeals division of the Respondent for further efforts to reach a resolution with the Petitioners about the underlying liabilities remaining due through the administrative hearing process provided by Section 6320 and 6330 . Heritage Reporting. Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 7 The Court will order a report on these remand 2ctivities on or before March 15, 2012, to be submitted. jointly by the parties, .or if agreement cannot be reached as to what to report to the Court, indepencently by the parties This concludes the Court ' s oral f indings of fact and opinion in this case. (Whereupon, at 4:06 p.m., the bench opinion in the aboVe-entitled matter was concluded.) // // // // // // // // // // // // // // // // . Heritage Reporting Corporation (202) 628-4888