U.S. Tax Court Reprimands the IRS for Denying Taxpayer’s Due Process Rights in Collection Action

Taxpayer was a personal injury lawyer whose income varied widely each year because it was dependent on uncertain contingency legal fees. He timely filed his 2009 and 2010 income tax returns but was not able to pay the entire tax debt and requested a payment plan. The IRS issued a Final Notice of Intent to Levy. Through his representative the taxpayer requested a collection due process hearing and on the day of the appointment went to the IRS’s office with his representative to meet with the settlement officer assigned to his case and explain his circumstances. The settlement officer didn’t meet with the taxpayer and his representative because she was absent from the office due to sickness.