The timing of this guidance syncs with the timing of the earliest Tax Court cases Chief Counsel’s office might expect based on the issuance of the revocation notices.We are unaware of any pending cases on this issue and welcome comments directing us to filings under this new provision of the code. The provision clarifies that the party against whom a Tax Court petition is filed is the Commissioner of the Internal Revenue Service.The SBSE Commissioner will certify that the identified individuals each have a seriously delinquent tax debt.The Service, under section 7508(a)(3), will postpone the certification of taxpayer serving in a combat zone or contingency operation.On April 5, 2018, the IRS issued CC-2018-005 providing guidance to Chief Counsel attorneys regarding how to handle IRC 7345 cases brought in Tax Court.We reported in a prior post that Deputy Chief Counsel Drita Tunuzi stated at the last ABA Tax Section meeting that the IRS would probably start issuing the notices by the end of February.8 (2) Section 7345(f) is amended by striking 9 ‘‘subsection (a)’’ and inserting ‘‘subsection 10 (b)(1)(B)’’.
The Notice also talks about what the attorneys should put in a stipulated decision document.
It lays out the responses the Chief Counsel attorneys should make to those arguments.
The Notice takes the position that IRC 7345 does not provide for judicial review of the liability through this process. A suit seeking to challenge the liability would effectively seek to restrain collection of an assessed tax and that would be prohibited by the Anti-Injunction Act.
If the case is brought in District Court, Chief Counsel would provide a defense letter and the information the DOJ attorneys would need in order to properly defend the case.
The Notice instructs attorneys to always use the settlement classification of “Standard.” The Standard classification in a defense letter means that the DOJ should coordinate with Chief Counsel prior to settling the case.
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Section 7345 is not a provision providing an exception to that act.