Krishan K. Gossain and Kavita Gossain, T. C. Memo. 2024-97, filed 10/21/24, wanted IRS’ first-time abate administrative waiver. But they got chopped for misclaiming real estate pro (short the 750 hours and more-than-half test) and omitting some dividend income on a 1040, so the Section 6662(a) chops that Krish and Kav got aren’t on IRS’ waiver list. Besides, Krish and Kav are asking too late. Taishoff says, equitable tolling, anyone?

Yes, I know, the IRS’ website is no substitute for statute and regs, but for the record: https://www.irs.gov/payments/penalty-relief-due-to-first-time-abate-or-other-administrative-waiver

Then Krish and Kav claim Appeals failed to consider their case, so they should win. Judge Morrison says no.

“The remedy for any such failure is petitioners’ right to seek Tax Court redetermination of the deficiencies, a right that petitioners have exercised. The Tax Court is not authorized to resolve issues in favor of petitioners as a remedy for any prior failure by the Appeals Division to resolve their case.” T. C. Memo. 2024-97, at pp. 10-11.

Sharp-eyed readers of this my blog will recollect I blogged an off-the-bencher on this very case. Both sides moved for reconsideration thereafter, which Judge Morrison granted out of time. I commented at the time how unusual this was, and wondered why. See my blogpost “Off-the-Bench, On-the-Bench,” 5/29/24.*

Now I got my answer.

Edited to add, 10/22/24: Note administrative waiver provided in Section 6654(e)(3). But I doubt Krish and Kav qualify.

* https://taishofflaw.com/2024/05/29/off-the-bench-on-the-bench/