TAX COURT OPINION

Case: Charles F. Vulliet, Sr.
Docket Number: 29992-11L
Judge: Kroupa
Opinion Type: bench
Filed: 06/25/2013
Pages: 7

UNITED STATES TAX COURT WASHINGTON, D.C. 20217 CHARLES F. VULLIET, SR., Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. ) ) ) ) ) ) ) ) ) ORDER Docket No. 29992-11L 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 this case before Judge Diane L. Kroupa in Portland, Oregon on May 10, 2013, containing her oral findings of fact and opinion rendered at the trial session at which the case was heard. In accordance with the oral findings of fact and opinion, an appropriate order will be issued granting respondent's Motion for Summary Judgment. (Signed) Diane L. Kroupa Judge Date: Washington, DC June 25, 2013 SERVED JUN 28 2013 Capital Reporting Company 3 1 2 Bench Opinion by Judge;Diane L. Kroupa May 10, 2013 3 Charles F. Vulliet, Sr. v. Commissioner 4 5 6 7 8 9 10 11 12 13 Docket No. 29992-11L BENCH OPINION 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. 14 All section references are to the Internal Re.venue 15 16 17 18 19 20 21 22 23 24 25 Code for 2003 and 2004 (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 unpaid tax liabilities for the years at issue. This collection review matter is before the Court on respondent's Motion for Summary Judgment, filed February 11, 2013. Petitioner did not file a response to respondent's motion, despite having been ordered to do so by the Court, nor did 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 4 petitioner appear for the hearing scheduled on respondent's motion in Portland, Oregon. Amy Ulmer appeared on behalf of respondent. FIND1NGS OF FACT The record establishes the following facts. 1 2 3 4 5 6 Petitioner resided in Sun River, Oregon at the time 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 he filed the collection review petition. Petitioner failed to file income tax returns for either 2003 or 2004. Respondent then prepared a substitute for return based on information received from third parties. Respondent then issued petitioner a statutory deficiency notice for each year at issue determining a deficiency, a late filing addition, a late payment addition and an addition for failure to pay estimated taxes. Petitioner failed to contest the determinations in either deficiency notice. Respondent thereafter assessed the amounts shown in the deficiency notices. Petitioner failed to pay the assessed amounts so respondent filed a lien in the county where petitioner resides. Respondent then sent petitioner a Notice of Federal Tax Lien Filing and Your Right to a Hearing under I.R.C § 6320. The lien notice advised petitioner that a Federal tax lien had been filed with respect to petitioner's unpaid 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 5 1 2 taxes for each of the years at issue and informed petitioner that he could receive a hearing. 3 Petitioner timely requested a hearing. Petitioner 4 5 6 7 8 9 asserted in his hearing request that respondent has "been collecting but not crediting." He also asserted that the "taxes [were] not owed & [were] paid in part." Respondent, in scheduling the hearing, informed petitioner that he must provide respondent 10 with financial information on Form 433-A and that 11 12 13 14 15 16 17 18 petitioner needed to file delinquent returns for 2005, 2006, 2008, and 2009 (the delinquent returns) for respondent to consider any collection alternatives. Petitioner was also informed that he could not contest the underlying liabilities as he had received a statutory notice for each year at issue. Petitioner did not provide the Settlement 19 Officer assigned to his CDP hearing with any 20 21 22 23 24 financial information and did not provide any of the delinquent returns. Without any information or response from petitioner, the Settlement Officer issued a Determination Notice to petitioner upholding respondent's collection action regarding 25 petitioner's unpaid income tax liabilities for the 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 6 1 2 3 4 5 6 7 8 years at issue. Petitioner timely filed a petition with this Court. In his petition, petitioner asserts several issues with the Determination Notice, contests the underlying tax liability for the years at issue and contests the determinations that the Settlement Officer made. Respondent noticed there were certain factual errors in the original 9 Determination Notice, so respondent moved the Court 10 to remand the case to Appeals for a supplemental 11 12 13 14 15 16 17 18 19 20 21 hearing. The Court so:ordered a supplemental hearing. A new Settlement Officer was assigned to handle the supplemental hearing. Again, petitioner failed to provide any financial information and failed to provide the delinquent returns to the new Settlement Officer. Without the necessary financial information and the delinquent returns being filed, the new Settlement Officer subsequently issued a Supplemental Determination Notice to petitioner upholding respondent's collection action regarding 22 petitioner's unpaid income tax liabilities for the 23 24 25 years at issue. As mentioned previously, respondent filed a summary judgment motion and the Court scheduled a 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 7 1 2 3 4 5 6 7 8 9 hearing on respondent's motion at the Portland, Oregon trial session on May 6, 2013. Petitioner did not appear at the hearing and failed to file an objections or response to respondent's motion. OPINION We are asked to decide whether to grant summary judgment. Summary judgment is intended to expedite litigation and avoid unnecessary and expensive trials. See, e.g., FPL Group, Inc. v. 10 Commissioner, 116 T.C. 73, 74 (2001). A motion for 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 summary judgment will be granted if the pleadings and other acceptable materials, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that a decision may be rendered as a matter of law. See Rule 121(b). Where, as is the case here, the validity of the underlying tax liability is not properly placed at issue, the Court will review respondent's determination for abuse of discretion. Sego v. Commissioner, 114 T.C. 604, 610 (2000); Goza v. Commissioner, 114 T.C. 176, 181-182 (2000). We therefore must decide whether respondent exercised his discretion arbitrarily, capriciously or without sound basis in fact or law. See Woodral v. 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 8 1 2 3 4 5 6 7 8 9 10 11 Commissioner, 112 T.C. 19, 23 (1999). Based upon our examination of the entire record before us, we find that respondent did not abuse his discretion in determining that the collection action should proceed with respect to petitioner's unpaid liabilities for the years at issue. Respondent is therefore entitled to summary judgment in his favor. To reflect the foregoing, decision will be entered for respondent and an appropriate order will be issued sustaining the determinations set forth in the Supplemental Notice of Determination Concerning 12 Collection Action (s) Under Section 6fMD and/or 6330, dated July 31, 2012, upon which this case is based, regarding petitioner's unpaid income tax liabilities for 2003 and 2004. 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 10:30 a.m., the above- entitled matter was concluded.) 13 14 15 16 17 18 19 20 21 22 23 24 25 866.488.DEPO www.CapitalReportingCompany.com