Opinion
5002-22L
05-21-2024
DEXTER DERRELL FINKLEA, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
David Gustafson Judge.
This is a collection due process ("CDP") case brought under 26 U.S.C. section 6330(d)(1). Petitioner Dexter Derrell Finklea has unpaid income tax liabilities for seven years (2008 and 2011-2016). After receiving a notice of lien filing he requested a hearing before the IRS Office of Independent Appeals and proposed a collection alternative, but in January 2022 Appeals sustained the lien determination because Mr. Finklea had not filed his income tax return for 2020 and was therefore ineligible for an alternative.
After Mr. Finklea filed suit in this Court, the Commissioner filed a motion (Doc. 10) to remand the case to Appeals because it appears that, at Mr. Finklea's CDP hearing, it had not been explained to him that he must be in filing compliance in order to obtain a collection alternative. We ordered (see Doc. 11) that Mr. Finklea respond to the motion to remand, but he failed to do so. We granted the motion in March 2023 and remanded the case to Appeals. (See Doc. 12.) In May 2023 petitioner filed his income tax returns for 2020 and 2021, but the IRS did not process those returns until about nine months later February 2024 (see Docs. 13, 15-19). This delay is unfortunate. After those two returns had been processed, Appeals attempted to schedule a supplemental CDP hearing, but Mr. Finklea has not been responsive to Appeals' communications. (See Docs. 19-20.)
As we noted, Mr. Finklea filed his delinquent 2020 and 2021 income tax returns in May 2023. However, we observe that his filing obligations continued to accrue: His income tax return for 2022 was due to be filed in April 2023, and his return for 2023 was due to be filed in April 2024. It would seem that, if he has not filed those two returns (for 2022 and 2023), then any attempt to obtain a collection alternative in a supplemental CDP hearing will necessarily be futile.
We cannot let this case remain stalled on remand. Mr. Finklea is obliged to file his tax returns and to communicate with Appeals. If he refuses to do so, then we cannot grant him any relief in this case but must sustain Appeals' determination and allow the collection of his liabilities for the seven years at issue to proceed. It is
ORDERED that Mr. Finklea shall comply with the following five instructions:
+ Mr. Finklea shall immediately (and in any event no later than May 31, 2024) initiate communication with the Commissioner's attorney, Mr. Tam (202-803-9699, ka.c.tam@irscounsel.treas.gov).
+ If Mr. Finklea's address or telephone number has changed, then he shall so notify the Court and the Commissioner.
+ No later than June 14, 2024, Mr. Finklea shall file a status report with the Court. In that report he shall describe his compliance with this order. In that report, he shall also state whether he has filed his income tax returns for 2022 and 2023 and, if so, the dates on which he filed them.
+ No later than June 14, 2024, Mr. Finklea shall phone at 202-521-0850 the Chambers Administrator of the judge signing this order, for the purpose of scheduling a telephone conference with the Court and the Commissioner's counsel.
+ Mr. Finklea shall hereafter respond promptly to communications from IRS Appeals, from the Commissioner's attorney in this case, and from the Court.
It is further
ORDERED that counsel for the Commissioner shall himself undertake to communicate with Mr. Finklea (and shall not leave this task to Appeals). He shall take all reasonable steps at his disposal to assure that the address and telephone number for Mr. Finklea that counsel and Appeals have been using (and that appear in the Court's records) are correct. It is further
ORDERED that the Commissioner shall forward to IRS Appeals a copy of this order. It is further
ORDERED that, in the next status report (due July 19, 2024), the Commissioner shall describe his compliance with this order.