Opinion
4335-21
03-08-2022
Timothy Finlayson & Rachel Finlayson Petitioners v. Commissioner of Internal Revenue Respondent
ORDER AND ORDER OF DISMISSAL FOR LACK OF JURISDICTION
Maurice B. Foley Chief Judge
On February 10, 2021, petitioners filed the petition to commence this case, seeking review with respect to a notice of deficiency issued to them for their 2018 tax year. On December 8, 2021, the parties filed for the Court's consideration a settlement stipulation and a proposed stipulated decision. Upon further review of the record, however, it appeared that the Court might possibly lack jurisdiction of this case, as petitioners alleged in their petition that the notice of deficiency on which this case is based was issued after petitioners had fully paid their tax liability for tax year 2018. Accordingly, by Order to Show Cause issued January 18, 2022, the Court directed the parties to show cause why this case should not be dismissed for lack of jurisdiction because the notice of deficiency on which this case is based is invalid.
On February 4, 2022, respondent filed a response to the Court's Order to Show Cause. No response has been received from petitioners. Thereafter, on March 1, 2022, respondent filed a motion to dismiss on ground of mootness, stating therein that this case should be dismissed as moot because petitioners paid the 2018 tax liability prior to the issuance of the notice of deficiency. However, while the Court agrees that this case should be dismissed, mootness is not the proper ground for the dismissal. Rather, when a notice of deficiency is issued after the tax liability has been paid in full, that notice of deficiency is invalid and, in such a case, this Court lacks jurisdiction. See Naftel v. Commissioner, 85 T.C. 527 (1985).
Upon due consideration, it is
ORDERED that respondent's motion to dismiss on ground of mootness is denied. It is further
ORDERED that the parties' settlement stipulation and proposed stipulated decision, filed December 8, 2021, are stricken from the Court's record in this case. It is further
ORDERED that the Court's Order to Show Cause, issued January 18, 2022, is made absolute. It is further
ORDERED that this case is dismissed for lack of jurisdiction on the ground that the notice of deficiency on which this case is based is invalid.