Tax court upholds IRS levy after Kansas doctor ignores notices
Foulds v. Commissioner (U.S. Tax Court 2025) Collection Due Process Levy Summary
The Tax Court upheld an IRS levy against a Kansas taxpayer who failed to file returns or respond to deficiency notices, ruling that the IRS properly mailed notices and that Appeals did not abuse its discretion in sustaining collection.
Holding
The Tax Court held that the IRS properly mailed deficiency notices to the taxpayer’s last known address, precluding her from challenging the underlying tax liabilities in a collection due process (CDP) hearing.
The Office of Appeals verified compliance with statutory and procedural requirements and did not abuse its discretion in upholding the levy.
Why It Matters
Reinforces that proof of proper mailing, including Form 3877 entries, can establish notice even with minor procedural defects.
Confirms that failure to petition after a deficiency notice bars later challenges to liability in CDP proceedings.
Illustrates that a lack of filing compliance and cooperation can foreclose collection alternatives.
Demonstrates that the court will grant summary judgme…
