Taxpayers that owe more taxes than they can currently pay may request a Collection Due Process (CDP) hearing if they follow the rules. Possible assistance may include an installment plan, penalty relief and innocent spouse relief. One taxpayer was granted a CDP hearing on his 2022 tax return but was denied an installment plan and penalty relief because he hadn’t filed returns or paid taxes for 2020 and 2021. In spite of being granted time to come into compliance, he didn’t. He also requested innocent spouse relief for his wife but was denied because she wasn’t a party to the case. The U.S. Tax Court found the taxpayer’s arguments were moot, irrelevant or without merit. (TC Memo 2023-123)
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