Levy for Nursing Home’s Employment Tax Proper; Impartial SO Denied Hardship Relief, Installment Agreement (Crescent Manor, Inc.; Western Hills Residential Care Center, Inc.; Hennessey Manor Nursing Home, Inc., Silvercrest Manor Nursing Home, Inc., TCM)

CCH Tax Day Report

An IRS settlement officer (SO) did not abuse her discretion when she determined to proceed with a levy to collect a nursing home’s unpaid employment tax obligations. Since the taxpayer was a corporation, it could not qualify for relief due to economic hardship because the hardship relief provision was limited to individuals. Lindsay Manor Nursing Home, Inc., 148 TC —, No. 9, Dec. 60,858 and TC Memo. 2017-50, Dec. 60,859(M), followed.

The SO properly rejected a proposed installment agreement because the taxpayer could satisfy its liability by liquidating or borrowing against its assets, and it was not in compliance with current filing and estimated tax payment requirements. Its claim that it was unable to remain current with its tax deposits because of overdue Medicare and Medicaid payments was irrelevant.

The SO properly balanced the government interest in efficient tax collection with the taxpayer’s desire for collection action that was no more intrusive than necessary, especially since the taxpayer had defaulted on a previous installment agreement, its proposed installment payments exceeded its claimed monthly income, and it had been able to pay its employment tax obligations in the past despite claims it could not do so.

The SO’s review of relevant documents before the taxpayer’s Collection Due Process(CDP) hearing did not amount to prior involvement with respect to the unpaid tax that would call her impartiality into question.

Finally, the taxpayer’s requested remand for additional consideration was denied because it amounted to a request for a “do over” to correct its missteps during the CDP process.

Crescent Manor, Inc., TC Memo. 2017-94, Dec. 60,913(M)

Sulphur Manor, Inc., TC Memo. 2017-95, Dec. 60,914(M)

Silvercrest Manor Nursing Home, Inc., TC Memo. 2017-96, Dec. 60,915(M)

Hennessey Manor Nursing Home, Inc, TC Memo. 2017-97, Dec. 60,916(M)

Other References:

Code Sec. 6330

CCH Reference – 2017FED ¶38,184.11

CCH Reference – 2017FED ¶38,184.14

CCH Reference – 2017FED ¶38,184.28

Tax Research Consultant

CCH Reference – TRC IRS: 51,056.25



All stories by: CCHTaxGroup

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