Opinion
18482-22S
05-12-2023
ABIGAIL HANNAH ALBRIGHT, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Diana L. Leyden, Special Trial Judge
This case is calendared for trial at the September 18, 2023, Boston, Massachusetts, Trial Session of the Court. On August 21, 2022, petitioner filed a petition for review of a notice of deficiency for tax year 2020 in which respondent asserted an accuracy-related penalty under section 6662(a). On October 12, 2022, respondent filed the Answer in this case. Upon further review of the record, it appears a complete copy of the notice of deficiency issued to petitioner for tax year 2020 was not attached to the petition or the answer.
Unless otherwise indicated, all statutory references are to the Internal Revenue Code, Title 26 U.S.C., in effect at all relevant times, all regulation references are to the Code of Federal Regulations, Title 26 (Treas. Reg.), in effect at all relevant times, and all Rule references are to the Tax Court Rules of Practice and Procedure.
Respondent cannot assess an accuracy-related penalty under section 6662(a) unless he has complied with the requirement of section 6751(b)(1), which provides:
No penalty under this title shall be assessed unless the initial determination of such assessment is personally approved (in writing) by the immediate supervisor of the individual making such determination or such higher level as the Secretary may designate.
To show compliance with this provision, respondent must show (1) the identity of the individual who made the "initial determination", (2) an approval of the penalty "in writing", (3) the identity of the person giving approval and his or her status as the "immediate supervisor", and (4) evidence that the supervisory approval was obtained no later than the issuance to petitioners of the initial formal communication of proposed adjustments that includes penalties and provides the taxpayer the right to protest those proposed adjustments, such as a 30-day letter or Letter 525. See sec. 6751(b)(1); Clay v. Commissioner, 152 T.C. 223, 249 (2019).
If respondent wishes to continue to assert the accuracy-related penalty under section 6662(a) in this case, he shall file a status report and attach thereto a Case History Transcript and any other relevant documents to demonstrate compliance with section 6751(b)(1). Alternatively, if respondent concludes that he did not comply with the requirement under section 6751(b)(1) with respect to the accuracy-related penalty under section 6662(a), he should consider conceding that penalty and notify the Court by filing a status report. Upon due consideration, it is
ORDERED that, on or before June 5, 2023, respondent shall file a response to this Order attaching thereto the Notice of Deficiency issued to petitioner for tax year 2020. It is further
ORDERED that, if the parties do not submit a proposed decision document which states there is not any section 6662(a) penalty due from petitioner for the year[s] in issue before June 12, 2023, then on or before June 12, 2023, respondent shall file a status report attaching thereto any relevant documents to demonstrate compliance with section 6751(b)(1) or notifying the Court whether he concedes the accuracy-related penalty under section 6662(a).