TAX COURT OPINION

Case: Phillip L. Cannady
Docket Number: 16324-10L
Judge: Kroupa
Opinion Type: bench
Filed: 02/17/2012
Pages: 5

UNITED STATES TAX COURT WASHINGTON, D.C. 20217 PHILLIP L. CANNADY, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. ) ) ) ) ) Docket No. 16324-10L ) ) ) ) ORDER Pursuant to Rule 152(b), Tax Court Rules of Practice and Procedure, it is ORDERED that the Clerk of the Court shall transmit to petitioner and to respondent a copy of the pages of the transcript of the proceedings of the above case before Judge Diane L. Kroupa at Winston-Salem, North Carolina on February 1, 2012, containing her oral findings of fact and opinion In accordance with the oral findings of fact and opinion, decision will be entered for respondent. Dated: Washington, D.C. February 17, 2012 (Signed) Diane L. Kroupa Judge SERVED FEB 21 2012 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 Diane L. Kroupa Cannady v.. Commissioner Docket No. 16324-10L February 1, 2012 THE COURT: THE COURT HAS DECIDED TO RENDER ORAL FINDINGS OF FACT AND OPINION IN THIS CASE AND THE FOLLOWING REPRESENTS THE COURT'S ORAL FINDINGS OF FACT AND OPINION. THESE ORAL FINDINGS OF FACT AND OPINION SHALL NOT BE RELIED UPON AS PRECEDENT IN ANY OTHER CASE. This bench opinion is made pursuant to the authority granted in section 7459(b) and Rule 152. All section references are to the Internal Revenue Code, as amended and in effect for the years at issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. This is a collection review case involving the filing of a notice of Federal tax lien to collect from Petitioner his approximate $41,000 unpaid tax liabilities for the years at issue. This collection review matter is before the Court on Respondent's Motion for Summary Judgment, filed September 15, 2011. Petitioner did not file a response to Respondent's motion, despite having been ordered to do so by the Court, nor did Petitioner appear for the hearing scheduled in Winston-Salem on Respondent's motion. 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 4 Steven Webster appeared on behalf of Respondent. FINDINGS OF FACT AND OPINION The record establishes or the parties do not dispute the following facts. Petitioner resided in North Carolina at the time he filed the collection review petition. Petitioner filed income tax returns for 2006 and 2007. Withholding amounts were insufficient to pay the self-assessed amounts reflected on the returns for those years. As to 2004 and 2005, Petitioner failed to file any return, so Respondent prepared substitutes for returns for Petitioner for those two years. Petitioner failed to pay the outstanding balance, so Respondent therefore filed a Notice of Federal Tax Lien for each year at issue. Respondent sent Petitioner a Notice of Federal Tax Lien Filing and Your Right to a Hearing under I.R.C. Sec. 6320. The lien notice advised Petitioner that a notice of Federal tax lien had been filed with respect to Petitioner's unpaid taxes and informed Petitioner that he could receive a hearing. Petitioner timely filed a request for a hearing. Petitioner did not contest the underlying liabilities in the hearing request. Instead, Petitioner requested 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 Respondent to grant him an installment arrangement. Respondent, in scheduling the hearing, informed Petitioner that he must provide Respondent with financial information on Form 433-A for Respondent to consider any collection alternatives, including Petitioner's request for an installment arrangement. Petitioner did not respond in any manner to the letters from Respondent, did not provide any financial information and was not available for a telephonic hearing. Without any information or response from Petitioner, Respondent subsequently issued the Determination Notice upholding Respondent's collection action with respect to Petitioner's income tax liabilities for the years at issue. Petitioner timely filed a petition with this Court. In his petition, Petitioner asserts that Respondent failed to consider his health and employment situation. Petitioner did not address his failure to provide any information to Respondent. As mentioned previously, Respondent filed a summary judgment motion and the Court scheduled a hearing on Respondent's motion at the Winston-Salem, North Carolina trial session on January 30, 2012. Petitioner did not appear at the hearing. ' Based upon 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 the record in this case, we shall grant Respondent's summary judgment motion. To reflect the foregoing, decision will be entered for Respondent and an appropriate order will be issued sustaining the determination set forth in the Notice of Determination Concerning Collection Action(s) under Sec. 6320 and/or 6330 dated June 14, 2010, upon which this case is based, regarding Petitioner' s unpaid income tax liabilities for 2004, 2005, 2006 and 2007. The order will also grant Respondent's motion for summary judgment. THIS CONCLUDES THE COURT' S ORAL FINDINGS OF FACT AND OPINION IN THIS CASE. (Whereupon, at 10:28 a.m., the bench opinion in the above-entitled matter was concluded.) // // // // // // // // // // Heritage Reporting Corporation (202) 628-4888