In Uncategorized on 05/19/2020 at 19:25

I miss baseball. I’ll admit it has been a while since I did a full score of a game, forward K for struck out swinging and backwards K for caught looking, BB for walk (base on balls), and all that. And I’ll also admit I probably forgot a lot of notations.

But here are some of my notations from this blog, for those scoring, if any.

A Taishoff “Oh Please” comes in two classes; it’s given for particularly lame arguments or odiferous maneuvers. A Taishoff “Good Try,” again two classes, is given for an inventive ploy that fails, but really deserves praise. And a Taishoff “Good Job,” generally is given for a well-prepared and executed case, showing professionalism and class.

Today I have a Taishoff “Oh, Please” for IRS. The case is Robert J. Peacock and Bonita B. Peacock, 2020 T. C. Memo. 63, filed, 5/19/20. IRS wants to toss the Peacocks because Bob ponied up the claimed deficiency. Although IRS marked the check on their records as a deposit, and although Bob tendered the check with a four-page cover letter demanding a review by Appeals, IRS said “SNOD issued after payment was a mistake, no deficiency, no jurisdiction.”

Judge Vasquez is not impressed.

“Rev. Proc. 2005-18, sec. 4.01(1), states that a ‘taxpayer may make a deposit under section 6603 by remitting to the * * * appropriate office at which the taxpayer’s return is under examination, a check or a money order accompanied by a written statement designating the remittance as a deposit.’ Other than requiring a ‘written statement’ accompanying a check or money order, the revenue procedure does not specify how a taxpayer may designate a remittance as a deposit.” 2020 T. C. Memo. 63, at pp. 9-10. (Footnote omitted).

IRS says since Bob wrote “payment” on the memo line of his check, that means he paid. Judge Vasquez says, if no four-page letter that came with the check, it would be a payment. Except the letter makes it clear Bob wants to pursue the matter.

Judge Vasquez quotes the IRM even though it it’s neither law nor reg, to show how IRS expects its staff to deal with matters.

“Respondent asserts that the cover letter merely expresses disagreement with RA M’s determination. Respondent argues that an expression of disagreement ‘is not determinative of whether a remittance * * * [that satisfies] the underpayment in full should be treated as a payment or a deposit.’ However, petitioner husband’s letter did more than express disagreement. It also requested another meeting with the RA and stated that a request for Appeals review was forthcoming. These statements are as indicative of a desire to dispute a liability in prepayment forums as the term “Stop Interest”, which the IRM deems sufficient to denote a remittance as a deposit under section 6603. See IRM pt. Accordingly, we hold that petitioner husband properly designated the remittance as a deposit under section 6603 and Rev. Proc. 2005-18….” 2020 T. C. Memo. 63, at pp. 12-13. (Footnotes  and name omitted).

Judge Vasquez makes it clear he isn’t deciding that just voicing disagreement in a transmittal letter makes a check into a payment and not a deposit. See 2020 T. C. Memo. 63, at p. 13, footnote 14.

And the IRS coded the check as a 640 (6603 deposit), and issued a SNOD.

The Peacocks win.

A Taishoff “Good Job” to The Jersey Boys, and a “Good Job” from Judge Vasquez.

“When this case was called from the calendar, Mr. Agostino and Mr. Colasanto were present in the courtroom as volunteer lawyers. They entered appearances on behalf of petitioner husband for purposes of arguing the motion before us, and we are thankful for their pro bono service.” 2020 T. C. Memo. 63, at p. 1, footnote 1.






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