Opinion
7440-23L
01-31-2024
PAMELA J. STROUD, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Christian N. Weiler Judge
This case is calendared for trial at the Court's Nashville, Tennessee trial session beginning on April 8, 2024. On January 25, 2024, respondent filed an unopposed Motion to Remand in which he asks the Court to remand this collection due process (CDP) case to the Internal Revenue Service (IRS) Independent Office of Appeals (Appeals) for further consideration. On January 25, 2024, the parties filed a Joint Motion for Continuance.
When a petitioner has been deprived of a proper CDP hearing, the Court may remand a case to Appeals for a new hearing, where the new hearing is necessary and productive. Lunsford v. Commissioner, 117 T.C. 183, 189 (2001). The section 6330 hearing that follows a remand provides the parties with an opportunity to complete the initial hearing while preserving the taxpayer's right to receive judicial review of the ultimate determination of Appeals. Wadleigh v. Commissioner, 134 T.C. 280, 299 (2010).
Unless otherwise indicated, statutory references are to the Internal Revenue Code, Title 26 U.S.C. (I.R.C.), in effect at all relevant times.
In his Motion to Remand, respondent notes, among other things, that the settlement officer's case activity record indicates that he "verified that the IRS met all applicable requirements of law and administrative procedures . . . [and] that he reviewed IRS transcripts and an account." However, the administrative record does not include a copy of the documents or IRS transcripts that the settlement officer reviewed.
On December 16, 2022, the settlement officer sent petitioner and her counsel a letter informing them that a CDP hearing was scheduled for January 26, 2023. On January 27, 2023, the settlement officer sent petitioner and her counsel a letter informing them that they had missed the scheduled CDP hearing and gave them 14 days to respond.
In his Motion to Remand, respondent states that this letter informed petitioner that her CDP hearing was scheduled for January 26, 2022. This appears to be a typographical error, since the letter scheduling the CDP hearing was dated December 16, 2022. Therefore, we assume respondent to have meant January 2023, rather than January 2022.
After failing to attend the scheduled CDP hearing and receiving no response from petitioner or her counsel, the settlement officer issued petitioner a Notice of Determination on April 11, 2023. A copy of the Notice of Determination was likewise sent to petitioner's counsel.
On April 14, 2023, petitioner's counsel called the settlement officer and informed him that the petitioner had neither received her CDP hearing nor the settlement officer's letters (presumably the letters scheduling the CDP conference).
Due to the settlement officer's failure to include IRS transcripts in the administrative record, it is unclear what documents he relied upon for the verification determination. Moreover, it is unclear whether the settlement officer's letters scheduling the CDP hearing were properly delivered to petitioner or her counsel.
Upon due consideration, it is
ORDERED that respondent's Motion to Remand is granted and this case is remanded to respondent's Independent Office of Appeals for the purpose of affording petitioner an administrative hearing pursuant to I.R.C. § 6330. It is further
ORDERED that respondent shall offer petitioner an administrative hearing at respondent's Independent Appeals Office located closest to petitioner's residence (or by teleconference if preferable) at a reasonable and mutually agreed upon date and time, but no later than March 29, 2024. It is further
ORDERED that the parties shall, on or before April 29, 2024, file with the Court a joint status report (or separate status reports, if preferred) on the then-present status of this case. It is further
ORDERED that, if and when any supplemental notice of determination is issued to petitioner, respondent shall attached a copy of the supplemental notice of determination when filing his status report. It is further
ORDERED that the parties' Motion for Continuance, filed on January 25, 2024, is granted and that this case is stricken from the Court's Nashville, Tennessee trial session, commencing on April 8, 2024,. It is further
ORDERED that that the undersigned judge retains jurisdiction over this case.