TaxProf Blog: Lesson From The Tax Court: Take The Administrative Appeal (March 28, 2022)

Bryan Camp has published his article, “Lesson From The Tax Court: Take The Administrative Appeal”, which discusses how taxpayers’ myopia often leads them down the wrong path of ignoring their opportunity to go to Appeals. The article beings as follows:

Taxpayers famously focus on trying to get their “day in court” against the evil IRS.  The Independent Office of Appeals (Appeals) is no court.  It is not surprising, then, that taxpayers’ myopia often leads them down the dangerously wrong path of ignoring their opportunity to go to Appeals.  Today’s lesson teaches us one reason that is a mistake.
In Mahammad A. Kazmi v. Commissioner, T.C. Memo. 2022-13 (Mar. 1, 2022) (Judge Paris), the IRS was seeking to collect a §6672 Trust Fund Recovery Penalty (TFRP) assessed against the taxpayer.  In a Collection Due Process (CDP) hearing, Mr. Kazmi attempted to explain why the assessment was improper against him.  He relied on the rule that a taxpayer can challenge a liability in a CDP hearing if the taxpayer had not had a prior opportunity to do so.  While Mr. Kazmi had been given the opportunity to take an administrative appeal during the prior §6672 assessment process, he said that should not count because it did not give him a day in court.  While that argument might have traction in other situations, it failed in this one.  Details below the fold.

To see the full article, click: “Lesson From The Tax Court: Take The Administrative Appeal”

Posted by Mallory Wentz, Associate Editor, Wealth Strategies Journal.

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