Tax Court refuses to help old man settle taxes
Sal and Ruth Alaniz vs Commissioner of Internal Revenue
January 2005
Sal Alanz was a 73 year old insurance salesman with high blood pressure and sever vision impairment. Ruth his wife does not work. Sal and Ruth owed $221,000 for the tax years 1994, 1996 and 1997. In 2002 the Internal Revenue Service issued a notice of intent to levy against Sal and Ruth. Sal and Ruth sought a Due Process Hearing on the notice of intent to levy. In the context of the CDP hearing they offered to settle their taxes for $2,000.
The Appeals officer determined the collection potential to be 46,000 which was future income for 48 months of $34,176 plus $11,000 for the value of a 1964 Ford T Bird which they transferred to their son for less than adequate consideration.
They could not reach an agreement. The Appeals Officer rejected their offer and sent them a notice which allowed them to file a petition in the Tax Court.
The sole issue before the court was whether the IRS Appeals Officer abused his discretion.
The Court focused on procedural issues to reject the Tax Payers claim for relief.
The case is not a monumental decision but is a very good case to learn some important lessons I will be discussing in future blogs.
How to get into court on a rejected offer.
Transfer of Assets for less than adequate value.
Importance of presenting all your evidence to the Appeals Officer
Standard of Review
On Shot
Pleading your case properly
Age and Health Considerations
and more...
Anyway the score on Tax Court siding with a Taxpayer on a rejected offer keeps piling up. Another win for the government. Does a Taxpayer have any chance at all in the Tax Court on a rejected offer?
January 2005
Sal Alanz was a 73 year old insurance salesman with high blood pressure and sever vision impairment. Ruth his wife does not work. Sal and Ruth owed $221,000 for the tax years 1994, 1996 and 1997. In 2002 the Internal Revenue Service issued a notice of intent to levy against Sal and Ruth. Sal and Ruth sought a Due Process Hearing on the notice of intent to levy. In the context of the CDP hearing they offered to settle their taxes for $2,000.
The Appeals officer determined the collection potential to be 46,000 which was future income for 48 months of $34,176 plus $11,000 for the value of a 1964 Ford T Bird which they transferred to their son for less than adequate consideration.
They could not reach an agreement. The Appeals Officer rejected their offer and sent them a notice which allowed them to file a petition in the Tax Court.
The sole issue before the court was whether the IRS Appeals Officer abused his discretion.
The Court focused on procedural issues to reject the Tax Payers claim for relief.
The case is not a monumental decision but is a very good case to learn some important lessons I will be discussing in future blogs.
How to get into court on a rejected offer.
Transfer of Assets for less than adequate value.
Importance of presenting all your evidence to the Appeals Officer
Standard of Review
On Shot
Pleading your case properly
Age and Health Considerations
and more...
Anyway the score on Tax Court siding with a Taxpayer on a rejected offer keeps piling up. Another win for the government. Does a Taxpayer have any chance at all in the Tax Court on a rejected offer?
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