Opinion
12195-20
05-31-2022
RONALD STUDLE & SUSAN STUDLE, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER TO SHOW CAUSE
Alina I. Marshall Judge
This case is calendared for a remote trial at the session of the Court scheduled to commence on June 6, 2022, for cases in which Salt Lake City, Utah, is the place of trial.
On October 13, 2020, petitioners filed a Petition with the Court in which petitioners seek redetermination of deficiencies and penalties asserted by respondent in his Notice of Deficiency dated July 15, 2020 (notice) issued with respect to petitioners' 2015 and 2016 taxable years.
This Court is a court of limited jurisdiction. Any party, or the Court sua sponte, can question jurisdiction at any time. Neely v. Commissioner, 115 T.C. 287, 290 (2000). Our jurisdiction in a deficiency case depends, in part, on the issuance of a valid notice of deficiency and the timely filing of a petition. See Internal Revenue Code (I.R.C.) §§ 6212 & 6213. In the notice on which this case is based, respondent determined a deficiency in petitioners' Federal income tax for the 2016 taxable year in the amount of $0.00 and an accuracy-related penalty under I.R.C. § 6662 in the amount of $3,571.00.
A notice of deficiency generally must "provide a formal notification that a deficiency in taxes has been determined." Pietz v. Commissioner, 59 T.C. 207, 213-214 (1972). The Court has stated that "[w]hen the Commissioner makes adjustments to a taxpayer's income which are completely offset by other adjustments such that the section 6211 deficiency calculation indicates no additional tax due for that year, this Court simply lacks jurisdiction." Martz v. Commissioner, 77 T.C. 749, 754 (1981) (citing Paccon, Inc. v. Commissioner, 45 T.C. 392 (1966) and Myers v. Commissioner, 28 T.C. 12 (1957)).
Upon due consideration, it is
ORDERED that, on or before July 11, 2022, petitioners and respondent shall each show cause, in writing, why the Court should not dismiss for lack of jurisdiction the portion of this case related to petitioners' 2016 taxable year on the ground that respondent has not asserted a deficiency for that tax year.
The Court reminds the parties that this case remains calendared for trial at the Court's June 6, 2022, Salt Lake City, Utah, remote trial session.