TaxProf Blog – Bryan Camp: Lesson From The Tax Court: Failing Business No Reason To Stop Collection In CDP Hearing (March 29, 2021)

Bryan Camp has published an article on the TaxProf Blog, titled “Lesson From The Tax Court: Failing Business No Reason To Stop Collection In CDP Hearing” which discusses the outcomes of American Limousines, Inc. v. Commissioner, T.C. Memo. 2121-36 (Mar. 25, 2021) (Judge Halpern) as they pertain to owners of S corporations. The article begins as follows:

Collection Due Process (CDP) is designed to protect taxpayers from abusive collection actions by the IRS.  American Limousines, Inc. v. Commissioner, T.C. Memo. 2121-36 (Mar. 25, 2021) (Judge Halpern), teaches that CDP does not require the IRS to stop trying to collect from a business just because the business was failing.  There the taxpayer owed over $1.1 million in employment taxes.  The Office of Appeals rejected both the taxpayer’s installment payment offer of $2,000 per month, and its alternative proposal to be placed in CNC.  The taxpayer said that the Office of Appeals should have put it into CNC to allow its business to improve.  The Tax Court upheld the Appeals determination, finding that Appeals satisfactorily balanced the need for collection against the difficulties enforced collection would create for the taxpayer.  Details below the fold.

To download the full opinion, click here: American Limousines, Inc. v. Commissioner, T.C. Memo. 2121-36 (Mar. 25, 2021) (Judge Halpern)

To view the full article, click here: “Lesson From The Tax Court: Failing Business No Reason To Stop Collection In CDP Hearing

Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.

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