IRS Backs Rejecting Deal on Entrepreneur’s $127 Million Tax Debt

The US Tax Court correctly refused a tech entrepreneur’s $1.5 million offer in compromise over an almost $127 million tax debt and properly sustained the IRS’s proposed levy to collect it, the government told a federal appeals court.

Andrew “Flip” Filipowski appealed the decision to the US Court of Appeals for the Eleventh Circuit in September, arguing that the Tax Court’s rejection of his offer in compromise was based on factual misunderstandings and an incorrect interpretation of the law and regulations.

But the IRS says Filipowski’s underlying liabilities, compounded by continued failures to meet his federal tax obligations, support the ...