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…
1Opinion of the Court
OPINION
Holmes, Judge:
David Trout offered the IRS $6,000 to settle his 1989, 1990, 1991, and 1993 tax bills which totaled $128,736.45. The Commissioner accepted this offer in 1997. As part of the deal, Trout agreed to file his tax returns, and pay any tax due, on time for the next five years. The Commissioner says that Trout broke that deal, and now wants to collect the original bill. Trout says that he did file his returns on time but that, even if he didn’t, his failure was too immaterial to be a breach of his contract with the IRS. And even if it was a breach, he argues that his default did…
2Cases cited22 opinions
- Cooter & Gell v. Hartmarx Corp.Supreme Court of the United States · 1990
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Boyle v. United Technologies Corp.Supreme Court of the United States · 1988
- United States v. Kimbell Foods, Inc.Supreme Court of the United States · 1979
- Clearfield Trust Co. v. United StatesSupreme Court of the United States · 1943
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