In Uncategorized on 05/17/2016 at 13:26

Note this is not legal advice; see the link to The Fine Print on this site.

But Ch J Michael B (“Iron Mike”) Thornton, winding down his tenure as Ch J, shows us a very useful defense to IRS’ often-played SNOD-after-petition gambit in Clem Fleck Masonry, Inc., Docket No. 20506-14, filed 5/17/16.

Usual story: Clem petitions three tax years from a purported SNOD on Day 59; IRS answers at Day 112, saying that not only are those three years in play, but tacks on the next year also. But Clem didn’t attach a SNOD for any year, because IRS never issued one.

Remember, there is no required form for a SNOD. See my blogposts “Fake Out,” 12/16/14, and “Fake Out – Part Deux,” 6/23/15.

IRS plays the SNOD-after-petition gambit, and moves to dismiss after it dropped a SNOD the month before, well after the petition had been filed.

Ch J Iron Mike plays the sorry-but-no-jurisdiction variation, but saves the day.

“Under the circumstances, however, the Court will direct that a copy of petitioner’s Ownership Disclosure Statement filed at docket No. 20506-14…, be filed as of that date as the petition commencing a new case at docket No. 11435-16 for petitioner. All future communications relating to the notice of deficiency… issued to petitioner should be directed to docket No. 11435-16.” Order, at p. 2.

So? When in doubt whether a particular billet doux from IRS is, or can be deemed or construed to be, a SNOD, send in a petition and a check. If IRS moves to dismiss a couple months (hi, Judge Holmes) later, after dropping a real SNOD, send in a letter attaching the SNOD immediately, asking it be deemed an imperfect petition, and amend. It’s risky, but might work.

Edited to add, 10/1/21: Note that the operative word in the foregoing sentence is “amend.” It’s not enough to send in the letter and SNOD; get Form 2, style it an amended petition, and lay it on ’em.


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