Ex-NFL Player Wins Tax Court Case Over Proper Notification

An IRS appeals officer failed to verify the proper mailing of a notice of deficiency and incorrectly sustained a determination, the U.S. Tax Court ruled May 20.

Jevon Kearse, a retired NFL player, was denied a deduction of $1.36 million for a business bad debt expense on his 2010 federal income tax return. The Internal Revenue Service sent a notice of deficiency in May 2012 with the determination followed by a notice of federal tax lien. Kearse played for the Tennessee Titans and Philadelphia Eagles from 1999-2010.

Kearse argued that he hadn’t received the initial deficiency notice and requested a collection due process hearing. The IRS Office of Appeals sustained the determination and Kearse filed a petition for review in the Tax Court.

The appeals officer failed to properly verify that the assessment of the unpaid liability was preceded by a mailed notice of deficiency, Judge Tamara W. Ashford said in the opinion. The appeals officer failed to get evidence of the mailing as is required under tax code Section 6330(c) in order to sustain the lien, she said.

Section 6330(c) requires that an appeals officer make sure that all administrative procedures and laws have been met.

Taylor English Duma LLP in Atlanta represented Kearse.

The case is Kearse v. Commissioner, T.C. Memo 2019-53, T.C., No. 14080-14L, 5/20/19.