Harold Kupersmit faced IRS collection actions, including a levy and a federal tax lien, proposed to collect unpaid income tax and penalties for tax years 2009 and 2012, plus a civil penalty for filing a frivolous return in 2017. The IRS had prepared substitute returns for Kupersmit for the earlier years because he failed to file, assessing tax on income including gambling winnings. Kupersmit challenged the IRS's Notice of Determination in the United States Tax Court. The Tax Court upheld the IRS's decision, granting summary judgment to the Commissioner and dismissing Kupersmit's remaining claims for lack of jurisdiction. Kupersmit then appealed to the Third Circuit.
The Third Circuit exercised plenary review over the Tax Court's legal determinations and its grant of summary judgment. The court noted that while it reviews the Appeals Office's decision for abuse of discretion when the underlying tax liability is not at issue, Kupersmit did not challenge the specific bases for the Tax Court's decision or explain how the Appeals Office abused its discretion. Instead, Kupersmit's brief focused on unrelated historical interactions with the IRS, such as issues with 1099 forms and reporting gambling losses. The court found that Kupersmit failed to present relevant arguments for consideration. Consequently, the court held that he forfeited review of the Tax Court's decision. Additionally, the court addressed Kupersmit's request for $900 million in damages and other relief, stating that the Third Circuit is 'a court of review, not of first view' and therefore would not rule on these claims.
The IRS's collection actions, including the levy and lien, remain in effect against Kupersmit. The decision reinforces that appellants must specifically challenge the legal and factual bases of a Tax Court's summary judgment in their briefs to avoid forfeiting their claims. It also clarifies that the Third Circuit will not entertain requests for damages or new relief that were not properly raised or are outside the scope of appellate review.
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