Tax Court Upholds IRS Levy Against Retired Air Force Officer
Sullivan v. Commissioner, T.C. Memo. 2025-92, No. 2589-24L., 2025 BL 304589, Court Opinion
On August 27, 2025, the U.S. Tax Court granted summary judgment in Sullivan v. Commissioner, T.C. Memo. 2025-92, upholding the IRS’s right to levy the 2016 tax liability of retired U.S. Air Force officer James D. Sullivan.
The court found no genuine dispute of material fact and ruled that Sullivan could not re-litigate issues already addressed in a prior Notice of Deficiency related to his unreported military retirement income.
Why It Matters
The decision reinforces that taxpayers who receive a Notice of Deficiency and fail to petition the Tax Court cannot later contest the underlying tax in a Collection Due Process (CDP) case. It also highlights the IRS’s authority to proceed with collection when taxpayers fail to propose viable payment alternatives.
Key Facts
Petitioner: James D. Sullivan, retired U.S. Air Force officer, residing in North Carolina.
Respondent: Commissioner of Internal Revenue.
Tax Year at Issue: 2016.
Unreported Income: $244,695 lump-sum military retirement payment from the…
