Tax Court in Brief | Kelly v. Commissioner | First-Time Abatement, Failure to File, and Failed Leniency

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The Tax Court in Brief – July 11th – July 15th, 2022

Freeman Law’s “The Tax Court in Brief” covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.

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Tax Litigation:  The Week of July 11th, 2022, through July 15th, 2022

Kelly v. Comm’r, No. 13353-21L, T.C. Memo 2022-73 | July 13, 2022 | Lauber |

Short Summary:  At issue in this collection due process (CDP) case is the propriety of the IRS’s collection actions and their refusal to grant the taxpayer’s leniency requests and requests for acceptance of a partial payment installment agreement.  Ultimately, the IRS mostly prevailed.

Key Issues:

Facts and Primary Holdings

Key Points of Law:

InsightAs demonstrated by this case, a taxpayer with substantial income that has repeatedly failed to comply with filing and payment obligations is unlikely to find any leniency from the IRS or the Tax Court.  Here, where the taxpayer was making between $1 million and $2 million in income each year, the IRS and Tax Court rightfully refused his proposals.