Opinion
7503-21
09-22-2021
Eliazer Tauber & Miriam Tauber Petitioners v. Commissioner of Internal Revenue Respondent
ORDER
Maurice B. Foley Chief Judge
Pending in the above-docketed matte is an Order To Show Cause, served July 7, 2021, directing the parties to show cause in writing why this case should not be dismissed for lack of jurisdiction, on the ground that no valid notice of deficiency, as authorized by section 6212 and required by section 6213(a) of the Internal Revenue Code to form the basis for a petition to this Court, had been issued to petitioners with respect to taxable year 2018. The Order also noted that the petition had represented, and had attached documentation supporting, that the deficiency had been paid in November of 2020. If the amount of an alleged deficiency has been paid prior to issuance of a statutory notice pertaining thereto, the determined amount fails to qualify as a deficiency within the meaning of the governing provisions of the Internal Revenue Code.
On July 23, 2021, respondent filed a response to the Order To Show Cause. Therein, respondent explained that petitioners' payment had been received by the Internal Revenue Service (IRS) but was applied as a credit to the taxable year 2020. Petitioners likewise sent letters filed July 19, 2021, and August 2, 2021, advising further as to their position and intentions, as well as their frustrations with the IRS in that regard. Consequently, while the situation is highly unfortunate, the deficiency was not treated as paid at the time of the notice of deficiency, and the Court has jurisdiction to consider the case.
The premises considered, it is
ORDERED that the Court's Order To Show Cause, served July 7, 2021, is discharged. The Court would encourage the parties to work together to find an appropriate resolution in light of petitioners' intentions.
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