Taxpayers who can’t pay their past-due tax bills may request a Collection Due Process (CDP) hearing, but they must support their claims. In one case, a physician and his wife, a retail manager, failed to timely file a tax return one year. They later filed a past-due return but didn’t pay the $19,690 tax due. In a CDP hearing, they claimed that the husband suffered from alcoholism and depression but offered no evidence that these conditions incapacitated him in the year at issue. In fact, records showed that he’d earned substantial wages that year. No evidence indicated that his wife was unable to file. Penalties of $7,845 were upheld and the IRS proceeded with collection. (TC Memo 2022-89)
Our Blog 