Pace v. Comm'r
104 T.C.M. 107
| Tax Ct. | 2012Background
- Petitioner Pace operates a chiropractic business through his wholly owned Dauntless, Inc.
- Pace filed 2006 and 2007 federal returns but underpaid tax.
- On December 28, 2009, IRS issued a Final Notice of Intent to Levy and Your Right to a Hearing for 2006–2007.
- Pace timely requested a collection due process (CDP) hearing and sought a collection alternative.
- IRS required Form 433-A, Form 433-B for businesses, and current-file documentation; Pace provided 433-A and Dauntless-related materials.
- Appeals later requested additional documentation for Achievement Therapeutic Services LLC and Kenneth D. Pace, D.C., LLC; Pace provided limited information and claimed no income from those entities; he did not supply all requested documents
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the IRS abused its discretion in denying an installment agreement | Pace contends abuse of discretion | IRS reasonably denied due to missing documentation | No abuse; documentation gaps supported denial |
Key Cases Cited
- Orum v. Commissioner, 123 T.C. 1 (2004) (requires evaluating taxpayer's financial condition in installment agreements)
- Goza v. Commissioner, 114 T.C. 176 (2000) (abuse-of-discretion review governs CDP determinations)
- McLaine v. Commissioner, 138 T.C. 228 (2012) (taxpayer must provide requested financial information; absence supports denial)
- Christopher Cross, Inc. v. United States, 461 F.3d 610 (5th Cir. 2006) (abuse-of-discretion standard in CDP context; evidentiary burden on taxpayer)