Opinion
6446-19L
08-30-2023
WENDELL C. ROBINSON & MAY T. JUNG-ROBINSON, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
David Gustafson Judge
After the trial of this case involving tax years 2009 and 2012, we issued a bench opinion (Doc. 90) and in due course issued our decision (Doc. 102) on June 21, 2022. A little more than a year later, petitioners filed a document (Doc. 104) entitled on its cover page "Motion to Clarify Order" and on its first page "Motion to Reopen and for Judicial Clarification". It requested that the Court clarify that "their total remaining outstanding tax liability, for 2009, is: $8909.00, pursuant to Judge Gustafson's order". After the Commissioner responded (Doc. 112), petitioners filed a supplement to the motion (Doc. 113), to which the Commissioner has never had the occasion to respond. That supplement urged that, as to 2012 (the year about which their original motion was silent), "they do not owe any money for: tax year 2012, pursuant to Judge Gustafson's order." They evidently ask us to "clarify" that they are correct in their purported understanding of our "order". We will deny the motion as to 2009 and will order more filings as to 2012.
Tax year 2009
As to 2009, to the extent petitioner's motion is a motion under Rule 162 asking that we revise our decision, it is untimely. Such motions are due "30 days after the decision is entered"--in this case, by July 21, 2022. Petitioners' motion was filed more than 11 months late on June 28, 2023.
To the extent it is a motion under section Rule 261(a) "to redetermine interest on a deficiency assessed under Code section 6215" (assuming that such a motion is possible after a liability challenge under section 6330(c)(2)(B)), petitioners' motion fails on its merits: We did not hold that petitioners' "total remaining outstanding tax liability, for 2009, is: $8909.00". Rather, we held that "the Robinsons are liable for the interest and [$8,909] additions to tax that accrued on the unpaid portion of their self-reported liability" and for a "portion of the $3,318 addition to their 2009 tax liability assessed by the IRS that was attributable to the mathematical and clerical error ... and for interest ... for failure to pay that portion of the liability". (Bench op. at 36-37.) The Commissioner's response (Doc. 112) made a showing that the interest had been correctly computed and that it exceeded the amounts petitioners supposed. Petitioners made no response to the Commissioner's showing but simply posit in their reply (Doc. 115 at 2) that "[i]f Petitioners owe any interest, it would be on: the $8,909.00 from the date of Judge Gustafson's order" (presumably meaning our decision entered in June 2022). It is not so:
On an addition to tax under section 6651(a)(2), interest is due "from the date of the notice and demand", sec. 6601(e)(2)(A), not the date of a court order confirming the liability. Exhibit A to the Commissioner's response shows that the addition to tax was assessed in two pieces in October 2012 and August 2014, and in each instance the transcript shows, on the same date, the issuance of a notice. The Commissioner thus makes a plausible showing that the interest was handled according to law, but petitioners ignore that showing and only assert a fallacy. We give their motion no further attention.
Tax year 2012
Petitioner's original motion (Doc. 104) did not include their contentions as to 2012. Those contentions were made in their supplement (Doc. 113) filed after the Commissioner made his response (Doc. 112), so the Commissioner has not had an occasion to respond to it.
At trial we found that petitioners "timely filed their return for 2012 (Ex. 31-R), reporting a total tax liability of $88,722 (Ex. 21-J, line 60). They included with their return a check for $23,371 .... That check combined with their withholding did equal the amount of the tax liability that they self-reported." (Bench op. at 13-14.) We held that petitioners "are not liable for the additional 2012 liability ... assessed by the IRS". That would seem to indicate that they have no 2012 balance due and that no further IRS collection would be appropriate as to 2012. However, petitioners' supplement includes an IRS Notice CP71C dated July 31, 2023, by which the IRS demands an "Amount due" of $25,340.61 for tax year 2012.
We cannot tell the basis for this 2012 liability asserted by the IRS, nor can we tell whether we might have jurisdiction to entertain petitioners' complaint--and, again, the Commissioner has not yet had an occasion to address these 2012 questions. We will therefore order filings.
Pursuant to the foregoing, it is ORDERED that as to tax year 2009 petitioners' motion for clarification is denied. but it is further
ORDERED that, no later than September 25, 2023, the Commissioner shall file a supplemental response to petitioner's motion as supplemented, addressing 2012. It is further
ORDERED that, no later than October 13, 2023, petitioners shall file a supplemental reply.