Gillum v. Commissioner
2012 U.S. App. LEXIS 7265
| 8th Cir. | 2012Background
- Gillum, a veterinarian, operated Cloverdale Animal Hospital and faced criminal restitution obligations for 1999-2001.
- A district court restitution order totaled $246,226 with ongoing monthly payments, separate from civil tax liabilities.
- IRS assessed delinquent taxes for 1996-2002 and filed liens for 1998 and 2000-2003 after Gillum failed to pay.
- Gillum timely requested a Collection Due Process (CDP) hearing under 26 U.S.C. §§ 6320, 6330.
- IRS issued lien and levy notices; alter ego/nominee entities (Cloverdale, LeStat Ops) also received lien notices and sought CDP hearings.
- Tax Court upheld the IRS determinations; held alter-ego/nominee issues were not parties to the proceeding.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Gillum received a fair CDP hearing | Gillum: officer relied on nonrecord info, denying a fair hearing. | Commissioner: record was complete; review confined to the administrative record. | Gillum was not denied a fair CDP hearing; no reversible error. |
| Whether the alter egos/nominees were entitled to a CDP hearing | Gillum: entities are Gillum's nominees/alter egos and entitled to CDP hearing. | Commissioner: such entities are not parties and not entitled to CDP hearing. | Tax Court lacked jurisdiction to grant CDP hearings for nominees/alter egos; affirmed. |
| Whether the administrative record was complete for judicial review | Gillum: record was incomplete; review hindered by missing materials. | Gillum agreed the record was complete; any omissions were harmless. | Court reviewed on the stipulated record and held it sufficient; no abuse of discretion. |
| Whether Schroeder properly considered collection alternatives | Gillum: proposed alternatives were not adequately explored due to record issues. | Schroeder properly refused collection alternatives given nondisclosure and lack of full information. | Schroeder did not abuse discretion; no valid basis to accept Gillum's proposed alternative. |
Key Cases Cited
- Robinette v. Comm'r, 439 F.3d 455 (8th Cir. 2006) (limits review to the administrative record with exceptions for incomplete records)
- Fifty Below Sales & Marketing, Inc. v. United States, 497 F.3d 828 (8th Cir. 2007) (deferential review of Appeals determination under § 6330)
- Shinseki v. Sanders, 556 U.S. 396 (Supreme Court 2009) (harmless-error standard in administrative review)