In Uncategorized on 10/23/2015 at 19:57

And Not Only On Your Tax Return

That’s the takeaway from David R. Stewart & Mary F. Stewart, Docket No. 29963-14L, filed 10/23/15, a designated hitter off the bat of STJ Daniel A. (“Yuda”) Guy.

Dave’s trusty attorney, whom I’ll call Davy, sent IRS a Form 12153 for the TFRPs arising from Dave’s business, and claims he also included a Form 12153 for Dave’s personal taxes as well. The RO contact swears he only got the Form 12153 for the TFRPs.

STJ Yuda: “On March 7, 2014, [Davy] sent a packge by certified mail addressed to RO X. There is no dispute that the package included [Davy’s] cover letter, dated March 7, 2014, which included a reference line stating “re: Stewart Environmental Consultants LLC”. The package was received by an IRS employee on March 10, 2014. The parties disagree as to the remaining contents of the package. [Davy] contends that the package included a Form 12153 requesting an administrative hearing under section 6330 in respect of the income tax notice issued to the Stewarts. RO X stated in a sworn declaration… that [Davy’s] March 7, 2014, letter was accompanied by a copy of an employment tax notice sent to SEC on March 5, 2014, and a Form 12153, signed by [Davy] requesting an administrative hearing for SEC in respect of employment tax due for the taxable period “1303”. Order, at p. 2. (Footnote and names omitted).

When IRS finally, as they claim, got Dave’s and Mary’s income tax petition, it was too late. Dave and Mary get an equivalency hearing, but the NOD from that they can’t petition. Dave and Mary claim they were timely as to their income tax.

STJ Yuda: “There is no dispute that [Davy] sent a package to RO X by certified mail on March 7, 2014, the IRS received the package on March 10, 2014, and the package included a cover letter from [Davy] that referred to ‘Stewart Environmental Consultants, LLC’. Beyond that, there is considerable uncertainty as to the remaining contents of the package. Whereas [Davy] asserts that he placed a Form 12153 related to the income tax notice in the package, RO X states that his records show that the package contained a Form 12153 making reference to the tax period ‘1203’ and a copy of the employment tax notice issued to SEC on March 5, 2014.

“The Court has reviewed the record in considerable detail and finds that petitioners have not produced persuasive evidence that the package in question contained a request for an administrative hearing in respect of the income tax notice. Without more, we are compelled to find–as RO X maintains and as indicated in [Davy’s] cover letter–that the package contained items related to proposed levy actions against SEC. We conclude that petitioners did not timely request an administrative hearing in respect of the income tax notice.” Order, at pp. 4-5. (Names omitted).

Better practice would have been to itemize in the body of the transmittal letter each item enclosed. Not only would it provide evidence, it would also serve as a checklist for attorney and staff of what should go into the package with the letter. And make STJ Yuda’s job, and my job, easier.

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