Monthly Archives: June 2025

The Treasury Inspector General for Tax Administration (TIGTA) has published the results of an audit initiated to determine the efficiency and effectiveness of IRS revenue officer compliance sweeps on high income delinquent nonfilers. (Audit Report No. 2025-300-02)

As described in the audit, sweeps are a strategy used by Field Collection to support compliance initiatives. Sweeps address an increase in unassigned high priority inventory in an understaffed location or support a compliance initiative (e.g., egregious employment tax cases, high-income nonfilers (HINF), or specialty programs).

"HINF sweeps cases worked by revenue officers from fiscal years 2021 through 2022 were more impactful in terms of case closures and dollars collected than non-sweeps HINF cases," TIGTA said. Based on a percentage of cases worked, "revenue officers secured more returns under sweeps than non-sweeps and referred significantly more returns to Examination," it said, adding that for Tax Years 2014 through 2020, "revenue officers consistently collected more per sweep case than non-sweep case."

According to the audit, sweeps were conducted both in the U.S. and internationally. However, there are several areas in the U.S. "that have a high number of HINFs where limited or no sweeps were conducted." The areas where there are "opportunities for more sweeps" are eastern New Mexico, western Texas, northwestern Nevada, and Wyoming.

Auditors found that sweeps tracking data could be improved. Missing, incomplete, and/or inaccurate data were found in various data fields. "The IRS would benefit from complete and accurate data to track the results of sweeps," TIGTA stressed.

In addition, the audit revealed that Field Collection is not consistently using sweeps to help train employees and improve their skills. "While the sweeps desk guide provides the IRS with many opportunities to develop employee skills, Collection management is not always taking advantage of them. These activities have the potential to make sweeps an even more effective tool," the audit said.

Among its suggestions for IRS actions, TIGTA encouraged the IRS to "continue to identify and perform sweeps of all types, including assessments of high-risk geographical areas as well as issue-based sweeps."

Have an IRS Tax Problem?

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www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)

Read more at: Tax Times blog

The U.S. Tax Court’s decision in Aiello v. Commissioner, T.C. Memo. 2025-46, delivered on May 15, 2025, provides important guidance on the strict application of filing deadlines in Collection Due Process (CDP) cases—even after the Supreme Court’s landmark Boechler decision opened the door to equitable tolling. The ruling underscores the high bar taxpayers must clear to excuse a late petition and reinforces the importance of timely action when challenging IRS collection determinations. 

The CDP Framework

Under Internal Revenue Code § 6330, taxpayers are entitled to a CDP hearing before the IRS can proceed with certain collection actions, such as levies. If dissatisfied with the IRS’s determination, taxpayers have 30 days from the date of the notice of determination to file a petition with the Tax Court for review. Missing this deadline can be fatal to a taxpayer’s case—unless the court finds grounds for equitable tolling.

The Aiello Case 

Virgil Joseph Aiello received a notice of determination following a CDP hearing. He filed his petition with the Tax Court after the 30-day statutory deadline had expired. Aiello argued that the court should excuse his late filing under the doctrine of equitable tolling, which allows courts to consider late petitions in rare circumstances where fairness demands it. 

Boechler and Equitable Tolling

The Supreme Court’s 2022 decision in Boechler, P.C. v. Commissioner clarified that the 30-day deadline for filing a CDP petition is not jurisdictional and may, in theory, be subject to equitable tolling. However, the Court also emphasized that equitable tolling is reserved for extraordinary situations—typically where a taxpayer has pursued their rights diligently but was prevented from filing on time due to circumstances beyond their control.

Tax Court’s Analysis and Decision 

In Aiello, the Tax Court carefully examined whether the facts justified equitable tolling. The court reiterated that:

    "Equitable tolling is available only in rare cases where the petitioner demonstrates both diligence in         pursuing their rights and that some extraordinary circumstance stood in their way and prevented             timely filing."

Upon reviewing Aiello’s situation, the court found no evidence of extraordinary circumstances or sufficient diligence to warrant relief. Routine mistakes, misunderstandings, or simple neglect do not meet the threshold for equitable tolling. As a result, the court dismissed Aiello’s petition as untimely. 

Implications and Takeaways

    ·         Strict Deadlines Remain the Norm: Despite the Supreme Court’s recognition of equitable                   tolling, the Tax Court has made clear it will grant such relief only in exceptional cases.

·         High Bar for Equitable Tolling: Taxpayers must show both diligent pursuit of their rights and extraordinary circumstances that directly caused the late filing.

·         Practical Advice: Taxpayers and their advisors should treat the 30-day deadline for CDP petitions as effectively mandatory, ensuring prompt action to preserve their rights.

Conclusion 

Aiello v. Commissioner reinforces that equitable tolling is not a safety net for routine oversights or delays in tax litigation. The Tax Court’s decision serves as a cautionary tale: missing a statutory deadline in a CDP case will almost always result in dismissal unless truly extraordinary circumstances are present and well documented.

Have an IRS Tax Problem?

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)

Sources:

1.       http://www.smbiz.com/sbtc25.html

2.      https://www.linkedin.com/company/the-wealth-strategies-journal    

3.      https://www.currentfederaltaxdevelopments.com/blog/2025/1/17/tax-court-rejects-equitable-tolling-in-untimely-cdp-petition  

4.      https://taxprof.typepad.com/taxprof_blog/2025/05/lesson-from-the-tax-court-no-equitable-tolling-for-brain-farts.html 

5.       https://www.leagle.com/decision/intco20250515e00     

6.      http://www.smbiz.com/sbtc25.html     

Read more at: Tax Times blog