Tax court upholds levy after business fails to support installment proposal
DCSL, LLC v. Commissioner, No. 11416-24SL., T.C. Summary Opinion 2025-9, 2025 BL 386099, Court Opinion
The Tax Court upheld the IRS’s decision to proceed with a levy after the taxpayer failed to provide the required financial information to support its proposed installment agreement.
Holding
The Tax Court granted summary judgment for the IRS, finding no abuse of discretion in sustaining a levy against DCSL, LLC, for unpaid payroll tax liabilities. The taxpayer failed to supply the requested documentation regarding the owner’s ability to use personal assets to fund an installment agreement, and thus, the Appeals Officer acted within discretion to reject the proposal.
Why It Matters
Reinforces that failure to provide requested financial documentation can justify denial of a proposed installment agreement.
When evaluating collection alternatives, Appeals Officers may consider a business owner’s personal assets and borrowing capacity.
Illustrates that matters raised after a CDP hearing cannot retroactively establish an abuse of discretion.
Highlights the limited scope of review in CDP cases where…
