TAX COURT OPINION

Case: Matthew David Miracle
Docket Number: 5634-11L
Judge: Kroupa
Opinion Type: bench
Filed: 03/13/2012
Pages: 6

C AM ~¼" UNITED STATES TAX COURT WASHINGTON, DC 20217 MATTHEW DAVID MIRACLE, ) Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. ) ) Docket No. 5634-11 L ) ) ) ) ORDER Pursuant to Rule 152(b), Tax Court Rules of Practice and Procedure, it is ORDERED that the Clerk of the Court shall transmit herewith to petitioner and to respondent a copy of the pages of the transcript of the trial of the above case before Judge Diane L. Kroupa at Seattle, Washington on February 29, 2012, containing her oral findings of fact and opinion rendered at the conclusion of trial. In accordance with the oral findings of fact and opinion, a decision will be entered for respondent. (Signed) Diane L. Kroupa Judge Dated: Washington, D.C. March 13, 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 Kroupa February.29, 2012 Miracle v. Commissioner Docket No. 5634-11L 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 th.e authority granted in § 7459(b) and Rule 152. All section references are to the Internal Revenue Code as amended and in effect for the years at issue as later defined, and all rule referencesiare to the Tax Court Rules of Practice and Procedure. This is a collection review case involving a proposed levy to collect Petitioner's unpaid federal income tax liabilities for 2003, 2004, 2005. and 2006 (collectively the years at issue). This collection review matter is before the Court on Respondent's motion for summary judgment filed on December 22, 2011. The Court scheduled Respondent's motion for a hearing on the Court's Seattle, Washington, trial session beginning February 27, 2012. Matthew Miracle appeared on his own behalf. Patsy Clarke appeared on behalf of Respondent. Heritage Reporting Corporation (202) 628-4888 4 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 Findings of Fact and Opinion. The record establishes or the parties do not dispute the following facts. Petitioner.resided in Washington at the time the collection review petition was filed. Petitioner failed to file timely a federal income tax return for each of the four years at issue. Respondent prepared substitute for returns for Petitioner based upon information from third party payors. Respondent issued a statutory deficiency notice for each of the four years at issue based upon the substitute for returns.. Petitioner failed to file a petition to contest the deficiencies, so Respondent thereafter assessed the tax liabilities. Petitioner failed to pay any of the unpaid tax assessments. Respondent sent Petitioner a Final Notice-Notice of Intent to Levy and Notice of Your Right to a Hearing advising Petitioner that Respondent . intended to levy to collect the unpaid taxes for each of the years at issue and informing Petitioner that he could receive a CDP hearing. Petitioner timely filed a request for a hearing with Appeals in response to the levy notice. The hearing request covered each of the years at issue. Petitioner disagreed with the levy, but did not request any collection alternatives. 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 assigned a settlement officer to conduct Petitioner's hearing. The settlement officer, by letter, scheduled a telephonic hearing with Petitioner. The letter also advised Petitioner that if he disputed the relevant tax liabilities he must file returns to replace the substitute for returns. The settlement officer requested a Form 433-A, Collection Information Statement, with supporting financial documents and income tax returns for 2007, 2008 and 2009, which were delinquent, so that collection.alternatives could be considered. The settlement officer telephoned Petitioner for the hearing. Petitioner advised the settlement officer that he wanted to audio record the hearing. The settlement officer advised Petitioner that an audio recording is only allowed in a face-to-face hearing and further advised Petitioner that his case would be transferred to the local Appeals Office for a face-to-face hearing. The settlement officer advised Petitioner, by letter, a few weeks later that.he.was not entitled to a face-to-face hearing unless he provided the requested tax returns for 2007, 2008 and 2009 and a completed Form.433-A within 14 days of the letter. Given the circumstances, the settlement 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 officer scheduled a correspondence hearing. The settlement officer instructed Petitioner to provide a detailed statement of the issùes he wanted to discuss at the hearing. Petitioner senÈ Respondent a letter challenging the underlying tax liabilities for each of the years at issue. Petitioner failed, however, to submit any tax returns, provide the requested financial information or otherwise provide information showing the tax assessments for the years at issue were incorrect. Consequently, Respondent issued Petitioner a determination notice upholding the proposed levy action to collect Petitioner's tax liabilities for 2003, 2004, 2005 and 2006. Petitioner timely filed a petition with this Court. As.mentioned previously, Respondent filed a summary judgment motion. We.held a hearing on Respondent's summary judgment motion at our Seattle, Washington, trial session on February 27, 2012. Petitioner conceded that he owes the deficiencies and additions to tax asserted by Respòndent and that Respondent's determinations in the determination notice issued to Petitioner should be sustained. He further conceded that Respondent is entitled to summary judgment. 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 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 Determïnation Concerning Collection Actions Under § 6320 and/or 6330 dated February 8, 2011, upon which this case is based, regarding the unpaid liabilities for 2003, 2004, 2005 and 2006. 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 1:11 p.m. the bench opinion in the above-entitled matter was concluded.) // // // // // // // // // // // // Heritage Reporting Corporation (202) 628-4888