Alexander H. Hyatt - Working His Way Up to $25K 6673 Penalties

[jcolvin2]

On September 4, 2019, the Tax Court entered summary judgment against Alexander H. Hyatt in a CDP case:
https://www.ustaxcourt.gov/UstcDockInq/ ... ID=7658331

Mr. Hyatt spouted the usual TP rhetoric:

Petitioner's submissions to the Court do not call any of these facts into question. The Petition merely asserts that there is no legal authority--statutory, regulatory, or otherwise--that authorizes the notice of deficiency, that "respondent fraudulently manipulated its internal systems", and that no regulation imposes a tax liability on wages. Petitioner also attached documents to the Petition identical to those he submitted with his CDP hearing request, repeating his objections to the prevailing financial system, his status as a citizen, and the Social Security system, and purporting to rescind his signature on all Forms 1040 that he had previously filed.

In imposing a $25,000 penalty under section 6673, the court noted that this was not Mr. Hyatt's first rodeo:

This Court has imposed section 6673 penalties on petitioner for maintaining similar frivolous positions in four prior cases: $5,000 in docket number 7221-07L; $7,500 in docket number 26157-08; $10,000 in docket number 8771-08L; and the maximum penalty of $25,000 in docket number 22711-09L. Petitioner has not been deterred. In this case he has yet again advanced frivolous arguments that serve no purpose other than to protest the tax system and delay collection of the tax he owes, and which waste both the Court's and respondent's resources. We will therefore once again impose on petitioner the maximum penalty of $25,000.

[.]

Seems the Tax Court has finally caught on to TP-nonsense reality.

5 - 7 - 10 - 25K. So far, so good. Higher start and steeper curve. 25 - 25? Oops, sorry, hit the statutory max.

But, still much better than the usual old progression:
- 0 K (please don't do that again)
- 1 K (you really, really shouldn't do that again)
- 2 K (didn't we tell you not to do that again?)
- 5 K (now we're starting to get a little annoyed)

Plus more bites at the delicious frivolous apple before you hit 25K.

Not that any of the 72.5K in this (or any other) case will ever be collected. Unless one of these bozos forgets that they have some actual net assets at risk.

But, it does illustrate the need to raise the sanction limit. By a lot. Just so that a penalty of many times the amount of any tax at issue can be imposed on the latest jerk to come down the nuisance pike.

Like this clown. This was the 5th garbage suit from this recidivist moron.

[Gregg]

Friv Pens should be administered in voltage.

Prove me wrong.

[Burnaby49]

We know about your weakness for Taser justice but cash penalties hurt more in the long run.

[noblepa]

The courts need to tell this guy that, not only are we penalizing you $25k, but you can't file any new cases until the fines already imposed are fully paid.

As long as he can ignore the penalties and keep filing more nonsense, he will continue to do so.

Can penalties like this be "reduced to judgement", leading to involuntary forfeiture of his home or other assets? IANAL, so perhaps I have the terminology wrong, but can't the court take his house to pay the penalties?

[jcolvin2]

Can penalties like this be "reduced to judgement", leading to involuntary forfeiture of his home or other assets? IANAL, so perhaps I have the terminology wrong, but can't the court take his house to pay the penalties?

Yes. It is possible to seize and sell a house under the administrative collection provisions of the IRS. However, to seize a sell a primary residence takes a raft of approvals. Since 1998, the IRS has rarely pursued this route. It is much more common for the IRS to request that the DOJ bring a collection suit against the taxpayer in the local district court. This allows the government to foreclose on tax liens and take any property belonging to the taxpayer to satisfy the judgment, including a primary residence. (Bonus: While the IRS collection statute of limitations is 10 years from assessment, if a judgment is entered against the taxpayer in a collection suit, the IRS and the DOJ have an additional 20 years from the date of the judgment to collect.)

[noblepa]

Does he have any other significant assets that could be seized?