Opinion
11749-20L
01-18-2022
Frederic William Knaak Petitioner v. Commissioner of Internal Revenue Respondent
ORDER
Mark V. Holmes, Judge.
This case is on the March 22, 2022 St. Paul, Minnesota trial calendar. It's based on a notice of determination by the IRS that it should levy on Mr. Knaak's assets to collect his unpaid tax debt.
Mr. Knaak lives in Minnesota, which means that Tax Court's review of the IRS's decision is subject to Robinette v. Commissioner, 439 F.3d 455 (8th Cir. 2006). This case requires the Tax Court to follow what lawyers call the "record rule." What this means is that the Court has to look at the same things that the IRS looked at during the collection due process hearing (the so-called "administrative record") to decide whether the IRS officer abused his discretion in upholding the levy.
It's best if the parties can agree on what the administrative record is. It is therefore
ORDERED that on or before February 22, 2022, counsel for the IRS and Mr. Knaak stipulate (i.e., agree) to what the administrative record in this case is. If they are unable to do so, counsel for the IRS shall serve Mr. Knaak with an index listing the documents that the IRS thinks should be in the administrative record. The Court urges the IRS to make this index comprehensible to a nonlawyer. If the parties have not agreed on what the administrative record is, it is also
ORDERED that on or before March 1, 2022 Mr. Knaak: (1) provide the IRS with any evidence that he thinks should be added to the administrative record but is not in the IRS index and (2) list any documents in the IRS index that he thinks should not be in the administrative record.
If the parties do not settle the case by March 22, 2022, the Court intends to limit any trial to the proper contents of the administrative record. It will also hear at that time any arguments from both parties about whether or not the IRS did abuse its discretion in upholding the lien, and about whether there is any reason to send the case back to the IRS for reconsideration because of new evidence or a change in circumstance since the collection due process hearing was held.