In Uncategorized on 07/31/2020 at 16:09

We have all been taught that there is no prescribed form of SNOD. The notice, be it called whatever, must state tax type (income, excise, estate, gift), year, amount of deficiency, and “a notice to the taxpayer of the taxpayer’s right to contact a local office of the taxpayer advocate and the location and phone number of the appropriate office.” Section 6212(a).

Now whether the TAS notice is a separate document, or includible in the text of the SNOD, is nowhere stated. Neither is the absence of the TAS notice expressly stated to be a jurisdictional defect, or a mere procedural irregularity, curable whenever.

That said, today we have Muhammad Ishaq & Rahat Sultan Ishaq, Docket No. 13309-19, filed 7/31/20, a designated hitter from Judge Albert G (“Scholar Al”) Lauber. Mu & Ra can’t find the SNOD they petitioned.

“In their petition petitioners checked the box stating that they were disputing a “notice of deficiency” and listed the date of the notice as June 28, 2019. The document they attached to their petition was dated June 28, 2019, but it was not a notice of deficiency. Rather, it was a Letter 555 which stated, ‘We previously sent you a Notice of Deficiency.’ The letter indicated that petitioners had submitted additional information to the IRS but that the IRS ‘did not make changes to the tax increase we proposed previously because the information you sent us did not justify a change.’ The letter informed petitioners that ‘[t]he last date to petition the Tax Court is July 19, 2019.’ This suggests that a notice of deficiency was sent to petitioners 90 days previously, i.e., on April 19, 2019. The letter showed a $15,821 balance due (including penalties and interest accrued to June 28, 2019).” Order, at p. 1.

Well, Mu & Ra petitioned July 17, 2019, so they’re timely, no? No, because neither IRS, nor Mu, Ra, or their trusty accountant, can find the SNOD.

Anybody but I remember Oola Mar & Marlin D. Johnson? No prize if you do, but you certainly pass the cognitive impairment exam. The rest of you, see my blogpost “Fake Out,” 12/14/16. It seems IRS gave Oola Mar & Marlin a Letter 4314C, which likewise said that IRS sent a SNOD, except sometimes IRS didn’t and STJ Lewis (“Great Name”) Carluzzo didn’t mind. Apparently Letter 555 is Letter 4314C’s little brother; or maybe not.

Judge Scholar Al is not going to try to figure this out. Dismissed for want of jurisdiction.

But wait, there’s more.

“In his supplemental response respondent noted that the IRS had issued to petitioners identical Notices CP21E dated February 24, 2020, which showed that they had a balance due of zero for 2017. Respondent explained that these Notices reflected the reversal of a premature assessment of the 2017 liability that the IRS had made on September 2, 2019. According to respondent, the Notices CP21E do not constitute a determination by the IRS that petitioners are not liable for a deficiency and penalty for 2017. Respondent accordingly believes that a ruling on his Motion to Dismiss for Lack of Jurisdiction ‘remains necessary to resolve this case.'” Order, at p. 2, footnote 1.

So IRS can hit Mu & Ra with a SNOD, as SOL hasn’t run (calendar 2017 tax due date was April 17, 2018).

And taxpayers can magically ascertain if a SNOD was really sent, because IRS may just be playing one of its little tricks when it says one was sent that they can’t find.










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