Jon B. Novak

CourtUnited States Tax Court
DecidedJune 17, 2026
Docket7365-24
StatusUnpublished

This text of Jon B. Novak (Jon B. Novak) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jon B. Novak, (tax 2026).

Opinion

United States Tax Court

T.C. Memo. 2026-52

JON B. NOVAK, Petitioner

v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

__________

Docket No. 7365-24L. Filed June 17, 2026.

Heather S. Voegele Anson, for petitioner.

Christina L. Holland and Joline M. Wang, for respondent.

MEMORANDUM OPINION

JENKINS, Judge: Petitioner timely filed a Petition under sections 6320(c) 1 and 6330(d)(1), requesting that this Court review a Notice of Determination Concerning Collection Actions Under IRS Sections 6320 or 6330 of the Internal Revenue Code (NOD) sustaining the filing of a Notice of Federal Tax Lien (NFTL) for the 2017, 2018, and 2019 tax years. The NOD, which rejected petitioner’s proposed installment agreement, was issued to petitioner by an Appeals officer (AO) in the Internal Revenue Service (IRS) Independent Office of Appeals (Appeals) after a collection due process (CDP) hearing. Respondent filed a Motion for Summary Judgment (Motion) pursuant to Rule 121, contending that it was not an abuse of discretion for the AO to reject petitioner’s installment agreement and sustain the NFTL filing.

1 Unless otherwise indicated, statutory references are to the Internal Revenue

Code, Title 26 U.S.C., in effect at all relevant times, regulation references are to the Code of Federal Regulations, Title 26 (Treas. Reg.), in effect at all relevant times, and Rule references are to the Tax Court Rules of Practice and Procedure. Monetary amounts are rounded to the nearest dollar.

Served 06/17/26 2

[*2] Petitioner’s Response to Motion for Summary Judgment (Response) argues that there are genuine disputes of material fact. However, this Court concludes otherwise and finds that the AO did not abuse his discretion in sustaining the NFTL filing and rejecting petitioner’s installment agreement offer. This Court will thus grant the Motion.

Background

The following facts are based on the parties’ pleadings and Motion and Response papers, including the Exhibits attached thereto, as well as the Administrative Record. See Rules 93, 121(c). The facts are stated solely for the purpose of ruling on the Motion and not as findings of fact in this case. See Sundstrand Corp. v. Commissioner, 98 T.C. 518, 520 (1992), aff’d, 17 F.3d 965 (7th Cir. 1994). Petitioner resided in Nebraska when the Petition was filed.

I. Underlying Liabilities and Pre-CDP Interactions

Petitioner timely filed federal income tax returns with his spouse for the 2017, 2018, and 2019 tax years, which were selected for examination. The examination was resolved as agreed. On February 27, 2023, the IRS assessed additional tax as well as interest for tax years 2017, 2018, and 2019. The amounts assessed were as follows:

Year Tax Interest 2017 $354,503 $62,213 2018 893,629 114,342 2019 268,640 26,052

In the meantime, at the conclusion of the examination, petitioner requested an installment agreement, providing the IRS with an undated Form 9465, Installment Agreement Request, and Form 433–F, Collection Information Statement, dated December 29, 2022. The Form 433–F reflected more than $15 million in bank and brokerage accounts, one stock worth almost $10 million, and another worth $50 million. It also reflected net equity in petitioner’s primary residence of over $2 million and net equity in another piece of real property of almost $1 million.

On the basis of the Form 433–F, the IRS Collection function (Collection) determined that petitioner had sufficient ability to pay the tax liabilities. According to Collection notes, a revenue officer (RO) had a discussion with a representative for petitioner on October 4, 2023, in 3

[*3] which he conveyed that it appeared that petitioner had the ability to fully pay his liabilities, such that an installment agreement would not be granted. The RO further explained that if petitioner did not fully pay the liabilities in short order, an NFTL would be filed.

Collection notes indicate that a request to file an NFTL was made on October 6, 2023. They also reflect a response to the request from the IRS Automatic Lien System on October 11, 2023. IRS account transcripts, including those in the Administrative Record, indicate “Federal Tax Lien has been filed for this tax period” and “lien placed on assets” on October 20, 2023. See Internal Rev. Serv., Section 8A – Master File Codes, https://www.irs.gov/pub/irs-6209/section_8a_2023_redacted .pdf (last visited June 9, 2026). They also reflect that a notice of lien filing and right to CDP hearing was issued on October 24, 2023. The Administrative Record contains a partially legible Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320 (CDP Notice), dated October 24, 2023, which states “Certified Mail,” sets forth a number, and indicates that an NFTL was filed on October 24, 2023. The Administrative Record also contains a partially legible copy of Form 668 (Y)(c), Notice of Federal Tax Lien, indicating that it was prepared and signed sometime in October 2023. These documents were apparently submitted by petitioner with his Form 12153, Request for a Collection Due Process or Equivalent Hearing.

II. CDP Hearing Request

According to Collection notes, petitioner originally submitted Form 12153, referring to a levy, which was not processable because a levy notice had not yet been issued. The notes show that the RO informed petitioner’s representative of this on November 29, 2023; she indicated that she would correct it and resubmit. They state that on the same day, the RO received an updated Form 12153 with respect to the NFTL filing, which was forwarded to Appeals on December 4, 2023. The transmittal information shows November 30, 2023, as the “L3172 File by Date,” i.e., the deadline for petitioner to file a CDP hearing request. Petitioner’s Form 12153 dated November 17, 2023, and marked as received by Collection on November 29, 2023, lists his income tax liabilities for tax years 2017, 2018, and 2019 as the periods at issue, indicates that he is unable to pay in full and would like a collection alternative, and requests an installment agreement be considered as a proposed collection alternative. Petitioner did not dispute the underlying tax liabilities. According to petitioner, notice of rejection of petitioner’s installment agreement was provided in December 2023. 4

[*4] III. CDP Hearing

The AO began working on petitioner’s request on December 19, 2023, confirming that he had had no prior involvement with petitioner for the types of taxes at issue and the 2017, 2018, and 2019 tax years. He noted that the assessments resulted from an agreement after examination. On December 20, 2023, the AO sent petitioner a letter scheduling a telephone CDP hearing for January 23, 2024. In this letter, the AO requested additional financial information from petitioner to be taken into consideration for collection alternatives, including information about all stocks petitioner owned, information about the two brokerage accounts listed on petitioner’s Form 433–F, and documentation to support valuation of the two stocks listed thereon. The AO further indicated in the letter that petitioner had 14 days from the date of the letter to provide this information if petitioner wanted it to be considered for a collection alternative.

In a phone call on January 3, 2024, petitioner’s representative requested additional time to submit information. Petitioner’s representative stated that petitioner’s financial circumstances had changed and that petitioner could not pay the liabilities as Collection had determined. The AO requested the financial information by the date of the CDP hearing, but it was not provided.

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