Hartmann v. Commissioner

Summary

The United States Court of Appeals for the Third Circuit affirmed the Tax Court’s grant of summary judgment to the Commissioner of Internal Revenue in a collection due process matter involving a proposed levy for unpaid taxes. The court held that the IRS settlement officer did not abuse discretion by rejecting Hartmann’s offer-in-compromise or by conducting both the collection due process hearing and reviewing the offer. The court concluded that Hartmann failed to demonstrate a genuine issue of material fact or entitlement to judgment as a matter of law.

Holdings

1. The Tax Court properly granted summary judgment because the Settlement Officer did not abuse his discretion in rejecting Hartmann's offer-in-compromise when Hartmann had not timely filed his 2006 income tax return and had not provided the requested supporting documentation.
2. The same IRS agent's participation in the CDP hearing and review of the offer-in-compromise was not improper because 26 U.S.C. § 6330(b)(3) prohibits prior involvement with respect to the unpaid tax, and the record did not show that the Settlement Officer had such prior involvement.
3. Summary judgment was appropriate because Hartmann's arguments did not demonstrate a genuine issue of material fact or that the IRS was not entitled to judgment as a matter of law.

Questions Presented

1. Whether the Tax Court properly granted summary judgment for the IRS on Hartmann's challenge to the rejection of his offer-in-compromise.
2. Whether the same IRS agent's participation in both the collection due process hearing and review of the offer-in-compromise constituted an abuse of discretion or violated 26 U.S.C. § 6330(b)(3).

Disposition

affirmed