In Uncategorized on 10/20/2017 at 15:48

It’s caused more trouble at matches than the late arrival of tea without jam for the scones. It’s an ancient rule that goes back to the Eighteenth Century, to deter batsmen from deflecting the wicket-bound ball with pads, to avoid being bowled out.

If all the foregoing is unintelligible to you, go back to watching the Yankees and Astros.

Today it features analogically in Steven W. Webert & Catherine S.  Webert, Docket No. 15981-17, filed 10/20/17, and Ch J L Paige (“Iron Fist”) Marvel has to deal with what might become a full-dress T. C. when it grows up.

The Weberts petitioned SNODs for five (count ‘em, five) years, for which IRS claims the Weberts didn’t file returns.

So based on SFRs maybe, but Ch J Iron Fist doesn’t say.

Two days after the SNODs went out, the Weberts filed returns for the five years, but didn’t pay. Before IRS answered, the Weberts moved to restrain collection per Section 6213(a). Then IRS answered, moving to collect the self-reported taxes.

IRS says a deficiency is the shortfall between what is shown on a return and what tax is due. But there is no difference between what the Weberts showed on the delinquent returns that IRS processed, and what is due, so there is no requirement to issue a SNOD to assess tax. Thus IRS can go collect.

Ch J Iron Fist: “I.R.C. section 6213(a) provides that respondent generally is precluded from assessing or collecting a deficiency until after the mailing of a notice of deficiency authorized by section 6212 and the expiration of the period for filing a timely petition for redetermination. Meyer v. Commissioner, 97 T.C. 555, 560 (1991). If the taxpayer does file a petition with this Court, respondent is further precluded under section 6213(a) from assessing or collecting the deficiency until the decision of this Court becomes final. Id.; see also I.R.C. sec. 6215(a).

“With respect to this Court’s jurisdiction to restrain assessment and collection of a deficiency, section 6213(a) provides, in pertinent part:

“Notwithstanding the provisions of section 7421(a), the making of such assessment or the beginning of such proceeding or levy during the time such prohibition is in force may be enjoined by a proceeding in * * * the Tax Court, and a refund may be ordered * * * of any amount collected within the period during which the Secretary is prohibited from collecting * * * under the provisions of this subsection. The Tax Court shall have no jurisdiction to enjoin any action or proceeding or order any refund under this subsection unless a timely petition for redetermination of the deficiency has been filed and then only in respect of the deficiency that is the subject of such petition. [Emphasis added.]” Order, at p. 2.

So, IRS, supplement your answer by explaining which tax assessments you’re going after, the first batch the Weberts petitioned or the ones from the late-filed returns.

For procedure junkies, this case should be real fun.


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