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Ask The California Employment Tax And Payroll Tax Attorney – How To Avoid An IRS Tax Judgment Against You – The Travis Case

By Robert S. Schriebman

2024

Introduction

There are many ways to get in trouble with the IRS. At the top of the list is the failure to file tax returns and the failure to timely respond to an IRS deficiency notice. Howard Travis managed to accomplish both of these no-nos. The result was foreseeable – a disaster. The IRS had had enough of Mr. Travis. The government went before the US District Court in New Mexico and reduced the IRS assessment to a civil judgment. The difference between collecting an IRS assessment and a civil judgment is significant. The IRS has only 10 years to collect an assessment once it becomes final. But a civil judgment lien can be renewed time and time again.

This article will discuss the Travis case and show you how he got into trouble with the IRS.

The Travis Case

US v. Howard D. Travis, US District Court, D. New Mexico, February 27, 2024

Howard Travis failed to file income tax returns for the years 2010, 2011 and 2012. Pursuant to IRC § 6020(b), the IRS can prepare its own version of the returns. Once this was done, the IRS sent Travis deficiency notices between April 15, 2013 through June 18, 2015. These notices were sent by certified mail to Travis’ last known address. These deficiency notices are also known as 90-Day Letters. This means that the taxpayer has 90 days to file a petition before the US Tax Court. The Tax Court is the only federal court where a taxpayer can file a petition without first having to pay the taxes, penalties, and interest in advance.

Travis ignored each and every 90-Day Letter and ran up a deficiency of over $151,000. When the taxpayer fails to file a Tax Court petition, the proposed deficiency becomes final and subject to collection.

After the assessment has become final, the government is entitled to reduce Travis’ unpaid tax liability to judgment. As part of this process, the IRS submits to the court a certified IRS Form 4340, Certificate of Assessments, Payments, and Other Specified Maters, identifying the taxpayer’s tax liabilities. Since Travis failed to present any evidence undermining the validity of the assessments, the district court found that owed unpaid tax liability, and the government was entitled to reduce that liability to judgment.

Conclusion

When you owe the IRS, the most important thing to remember and to do is communication. Travis failed to communicate on several levels. First, he failed to file three years of tax returns. Second, he failed to timely file Tax Court petitions on three separate occasions. He got what he deserved.

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Robert Schriebman has a successful practice in the Rolling Hills Estates area of Los Angeles County serving clients throughout California and the United States. He has successfully dedicated more than 50 years to helping individual taxpayers, business owners, CPAs, Enrolled Agents, and tax attorneys navigate the complicated tax systems of the federal and state governments. Mr. Schriebman is in private practice. He is not affiliated in any way with the EDD, and he is not employed by the EDD or any other agency of the State of California.

Robert Schriebman has written the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.

Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House.

Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House in addition to the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.

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