Gardner v. Commissioner, T.C. Memo 2017-107 (U.S. Tax Court) June 8, 2017
Petitioner and her spouse accrued substantial annual income from sales of their books promoting tax avoidance through use of limited liability companies and vows of poverty to self-declare as insulated from federal taxation.
The Internal Revenue Service, not on board with petitioner’s tax planning devices, assessed tax deficiencies along with related additions.
Petitioner argued that levy on her assets pending appeal was improper. A settlement officer concluded that at least one tax year’s liability was final. All possible legal and administrative procedures had occurred, and there existed no impediment to collection for that year.
Collections due process procedures cannot serve as vehicles for relitigation of disputes already concluded. The settlement officer did not err or abuse discretion by observing correctly that one tax year and that no appeal had been take
Petitioner’s twenty five year history of litigation attempting to avoid federal tax liability persuaded the court that her current litigation was interposed for delay. Moreover, her assertion that the IRS had defamed her, lied, and denied her the exercise of her first amendment speech and religious freedoms are frivolous.
In light of petitioner’s waste of judicial and government resources, the court found a $10,000 fine was justified.