Hartmann v. Commissioner
2011 U.S. App. LEXIS 5720
| 3rd Cir. | 2011Background
- Hartmann filed a 2006 federal income tax return but did not pay the shown liability.
- The IRS assessed delinquent tax plus interest and a failure-to-pay penalty and issued a notice and demand for payment.
- After failure to remit, the IRS issued a final notice of intent to levy and Hartmann timely requested a collection due process (CDP) hearing.
- During the CDP process the IRS Office of Appeals proposed to levy after Hartmann failed to provide documentation supporting a collection alternative.
- Hartmann challenged the IRS determination in Tax Court; the Tax Court granted the IRS summary judgment and Hartmann appealed.
- The Third Circuit reviews de novo the Tax Court’s grant of summary judgment and affirms if there is no genuine issue of material fact.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether IRS properly considered a collection alternative. | Hartmann argues the IRS denied him a collection alternative. | Hartmann failed to timely provide required documentation; the SO informed him of filing requirements. | Yes; the IRS did not abuse discretion because Hartmann did not timely comply. |
| Effect of missing enclosures and alleged failure to remind at hearing. | Hartmann contends missing enclosures denied him opportunity to file a collection alternative. | The September 3, 2009 letter already set forth filing requirements; omissions do not excuse noncompliance. | No error; clean record shows rules were explicit and Hartmann failed to comply. |
Key Cases Cited
- Connecticut Gen. Life Ins. Co. v. Comm'r, 177 F.3d 136 (3d Cir. 1999) (review of Tax Court order; summary judgment standard)
- Christopher v. United States, 461 F.3d 610 (5th Cir. 2006) (administrative collection remedies; timing of information)
- Olsen v. United States, 414 F.3d 144 (1st Cir. 2005) (no abuse of discretion in rejecting collection offer for noncompliance)
- Kindred v. Comm'r, 454 F.3d 688 (7th Cir. 2006) (abuse of discretion standard in CDP review)
- Hartmann v. Comm'r, 351 Fed.Appx. 624 (3d Cir. 2009) (precedent on Hartmann proceedings; cited for context (not official reporter))