In Uncategorized on 07/24/2018 at 17:01

The Great Dissenter/Concurrer, Master Silt-Stirrer and now Coffey stirrer, Judge Mark V. Holmes, just can’t get enough of Coffey. So I’m taking my text from Irving Berlin’s 1932 feel-good song, and Judge Holmes is having another go with Judith S. Coffey, Petitioner & The Government Of The United States Virgin Islands, Intervenor, Docket No. 4720-10, filed 7/24/18.

IRS wins this vacation. Tax Court got the right answer for the wrong reasons twice.

Originally Tax Court dismissed 150 T. C. 4 for lack of jurisdiction, but that was wrong because there was a SNOD and a petition. What there also was, was a valid SOL defense. But remember, SOL is an affirmative defense, not a jurisdictional defect. Aff Defs must be pled and proven; if not, waived. Judith did plead and prove.

So TC vacated, and decided no deficiency.

Wrong again, because there was a deficiency. “Our court gains jurisdiction in a deficiency case when there’s a valid notice of deficiency and a timely petition. I.R.C. §§ 6212(a), 6213(a), 7442…. I.R.C. §6501(a) says the Commissioner has only three years after a return is filed to assess tax, and while a valid notice of deficiency tolls that three year period, see I.R.C. § 6503(a), a notice of deficiency isn’t automatically invalid if the Commissioner sends it after that period ends…. A late notice therefore doesn’t affect our jurisdiction, but the Commissioner also can’t assess the tax it shows when a statute-of-limitations defense is properly raised. See I.R.C. § 6501(a).” Order, at pp. 1-2 (Emphasis by the Court)(Citations omitted).

So Judith won summary J, and that’s the right answer.

Of course, Judith Coffey doesn’t care how the case ends, as long as she doesn’t owe any money. So summary J for Judy.


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