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Preston v. Commissioner of Internal Revenue

United States Tax Court
Jun 29, 2021
No. 4050-20L (U.S.T.C. Jun. 29, 2021)

Opinion

4050-20L

06-29-2021

Alan Courtney Preston, Petitioner v. Commissioner of Internal Revenue, Respondent


ORDER

MARK V. HOLMES JUDGE

This case is on the Court's October 25, 2021 San Francisco, California trial calendar. It's based on a notice of determination by the IRS that it may collect unpaid taxes by a levy to be placed on Mr. Preston's assets.

Mr. Preston is a resident of California, which means that Tax Court's review of the IRS's decision is subject to Keller v. Commissioner, 568 F.3d 710, 718 (9th Cir. 2009). 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 Mr. Preston's collection due process hearing (the so-called "administrative record") to decide whether the IRS officer abused his discretion in upholding the lien.

It's best if the parties can agree on what the administrative record is. It is therefore

ORDERED that on or before September 24, 2021, counsel for the IRS and Mr. Preston 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. Preston 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 October 8, 2021 Mr. Preston: (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 October 25, 2021, 2021, 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 determination that collection by levy is appropriate, 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.


Summaries of

Preston v. Commissioner of Internal Revenue

United States Tax Court
Jun 29, 2021
No. 4050-20L (U.S.T.C. Jun. 29, 2021)
Case details for

Preston v. Commissioner of Internal Revenue

Case Details

Full title:Alan Courtney Preston, Petitioner v. Commissioner of Internal Revenue…

Court:United States Tax Court

Date published: Jun 29, 2021

Citations

No. 4050-20L (U.S.T.C. Jun. 29, 2021)