Opinion
1911-22
08-17-2023
CORYNN WEST & CLAYTON WEST, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER OF DISMISSAL AND DECISION
Albert G. Lauber, Judge
With respect to petitioners' 2019 tax year, the Internal Revenue Service (IRS or respondent) determined a deficiency of $5,773 and an accuracy-related penalty of $799. The deficiency results chiefly from a determination that petitioners received unreported gambling income.
Petitioners timely petitioned this Court in February 2022. By Order served March 8, 2022, we continued the case to permit petitioners an opportunity to have their case considered by the IRS Independent Office of Appeals (Appeals). The Appeals officer scheduled a conference for October 7, 2022, but petitioners failed to appear. They likewise failed to supply to Appeals any documents to substantiate their claimed gambling losses. The Appeals officer sent petitioners two follow-up letters, but they failed to respond to either one. The case was then returned to respondent's counsel for trial preparation.
On January 17, 2023, respondent's counsel sent petitioners a letter scheduling a conference for February 16, 2023. Petitioners did not appear for the conference. Respondent invited petitioners to participate in a "virtual settlement week" conducted jointly by the American Bar Association and the IRS Office of Counsel during March 22-24, 2023. Petitioners did not respond to the invitation and did not attend the settlement event. On April 12, 2023, respondent's counsel sent petitioners a letter scheduling a telephone conference on April 19, 2023. Petitioners did not respond to the letter or attend the conference.
On April 21, 2023, respondent filed a Motion to Dismiss for Failure to Properly Prosecute. Respondent represents that petitioners have failed to supply any evidence to substantiate their claimed gambling losses, despite multiple requests that they do so, and have supplied no other evidence to support the assignments of error raised in the Petition. Respondent's counsel represents that he has "attempted to contact [p]etitioners numerous times," by mail and telephone, but that all such efforts have been unsuccessful.
By Order served April 25, 2023, we directed petitioners to file a response to respondent's Motion on or before May 24, 2023. We warned petitioners that, if they failed to respond, we would likely dismiss their case and enter a decision against them for the amounts set forth in respondent's Motion. Petitioners did not respond by that deadline or subsequently.
The standing pre-trial order in this case informed petitioners of their obligation to cooperate with respondent in preparing this case for trial or other disposition. Rule 123(b) of the Tax Court Rules provides that "[f]or failure of a petitioner properly to prosecute or to comply with these Rules or any order of the Court . . . the Court may dismiss a case at any time and enter a decision against the petitioner." Petitioners have not complied with our orders and Rules, and they have neglected properly to prosecute this case.
For these reasons, it is
ORDERED that respondent's Motion to Dismiss for Failure to Properly Prosecute, filed April 21, 2023, is granted, and this case is dismissed for lack of proper prosecution by petitioners. It is further
ORDERED and DECIDED that there is a deficiency in income tax due from petitioners for the taxable year 2019 in the amount of $5,773.00; and
There is a penalty due from petitioners for the taxable year 2019, under the provisions of I.R.C. § 6662(a), in the amount of $799.00.