That’s the question that perplexed Ch J. Michael B. (“Iron Mike”) Thornton is putting to IRS and Carolyn F. Biddix, Docket No. 15573-15, filed 9/16/15. I post these conundra for the information and possible edification of my readers, to illustrate the pitfalls and missteps one can encounter in the minefield.

Carolyn petitioned a SNOD in June, claiming she paid in March, and IRS’ answer agreed with Carolyn—she paid.

So SNOD no longer valid, right?

Except. “Thereafter, and unexpectedly given the state of the record, the parties on August 27, 2015, submitted a stipulated decision resolving the case and reflecting an income tax due from petition consistent with that stated in the notice of deficiency. The document further stipulated that the deficiency was calculated without consideration of the payment by petitioner on March 24, 2015.” Order, at p. 1.

Ch J Iron Mike is too polite to say “Huh?!” So he falls back on a truism from Tax Court Practice 101.

“…if the amount of an alleged deficiency has been paid prior to issuance of a statutory notice pertaining thereto, the determined amount fails to qualify as a deficiency within the meaning of the governing provisions of the Internal Revenue Code.” Order, at p. 1.

No deficiency means no valid SNOD.

So let Carolyn and IRS show cause in writing why their case should be dismissed for want of jurisdiction.

Takeaway—Jurisdiction before all.