Trout v. Comm'r
United States Tax Court
In 1997, P entered into an offer-in-compromise (OIC) covering tax years 1989, 1990, 1991, and 1993. The OIC included a term requiring P to timely file and pay his taxes for five years. P filed his 1996 tax return late, then failed to file 1998 and 1999 returns. P filed his 1998 taxes, showing a refund due, in November 2003, but failed to sign his 1999 return, which showed a liability of $ 164. In March 2004, R sent P a notice of intent to levy and P requested a CDP hearing.
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In 1997, P entered into an offer-in-compromise (OIC) covering tax years 1989, 1990, 1991, and 1993. The OIC included a term requiring P to timely file and pay his taxes for five years. P filed his 1996 tax return late, then failed to file 1998 and 1999 returns. P filed his 1998 taxes, showing a refund due, in November 2003, but failed to sign his 1999 return, which showed a liability of $ 164. In March 2004, R sent P a notice of intent to levy and P requested a CDP hearing. P paid his liability for 1999 but still failed to file a signed return. R issued a notice of determination upholding the…
1ConcurrenceMarvel, J.
I agree with the result reached by the majority. I write separately, however, to emphasize the obligation of the Appeals Office of the IRS to verify whether applicable administrative procedures governing the default of an offer-in-compromise (OIC) were followed in a section 6330 proceeding involving a defaulted OIC for an alleged breach of the Oic’s timely filing/payment provision (compliance provision). Although petitioner clearly breached his OIC and the IRS properly exercised its discretion in reinstating petitioner’s original tax liability, there have been and no doubt will be other cases…
2Cases cited8 opinions
- Riland v. CommissionerUnited States Tax Court · 1982
- James M. Robinette v. Commissioner of the Internal Revenue ServiceCourt of Appeals for the Eighth Circuit · 2006
- Robinette v. Comm'rUnited States Tax Court · 2004
- Charles G. Fargo Elizabeth A. Fargo v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 2006
- Vallone v. CommissionerUnited States Tax Court · 1987
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