The Tax Court has sustained in Roberts, TC Memo 2019-117 the IRS's denial of a request by married taxpayers for a face-to-face Collection Due Process (CDP) hearing. Because the taxpayers failed to participate in the originally scheduled telephone CDP hearing, the Court also sustained IRS's Notice of Intent to Levy.
On May 23, 2017, the SO mailed a letter to the taxpayers accepting their request for a CDP hearing. The letter stated the date for a telephone hearing and a date for submission of required documentation (including Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals), without which she could not consider collection alternatives, such as an offer in compromise, an installment agreement, or currently-not-collectible status.
The CPA later called and requested that the hearing be rescheduled and moved to Houston, Texas. No documentation had been submitted at that time. (Yea right)
The SO informed the CPA that she could not reschedule or transfer the hearing because the CPA did not contact her before the hearing with a request to reschedule. (the correct and professional thing to do)
The CPA requested a face-to-face hearing in Houston on numerous occasions, and the SO informed the CPA on each occasion that the taxpayers did not qualify for a face-to-face hearing. (Do you think SO has had enough of the CPA impossibly thanks that these are stalling techniques?)
The SO informed the CPA that she would permit him to schedule a telephone hearing on July 12, 2017. Prior to that date, the CPA submitted to IRS by fax some financial information, including an unsigned Form 433-A. On the fax, the CPA again requested a face-to-face hearing, which the SO denied on July 14, 2017. On July 28, 2017, the SO issued a Notice of Determination Concerning Collection Action(s) Under Section 6320 and/or 6330 sustaining the proposed levy.
Therefore, the SO did not abuse her discretion in denying a face-to-face hearing; could not consider collection alternatives; and properly sustained the proposed levy.
Read more at: Tax Times blog