Opinion
15372-20
04-22-2022
ESTELA AROESTE, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Joseph W. Nega Judge
This case is currently calendared for an in-person trial at the session of the Court scheduled to commence on May 2, 2022, in San Diego, California. On March 18, 2022, respondent filed a Motion for Continuance (respondent's motion). Respondent argues that a continuance is necessary because (1) the pleadings in this case are not yet closed and therefore it is unlikely that parties will be able to initiate discovery prior to the trial date; (2) respondent's Motion to Dismiss for Lack of Jurisdiction, filed March 8, 2022, as to the FBAR penalties is still pending before the Court; and (3) petitioner has not had the opportunity to have the Internal Revenue Service (IRS) Independent Office of Appeals (Appeals) consider her case. Respondent represents that this case has not been previously continued.
On March 28, 2022, petitioner filed an Objection to Motion for Continuance. Petitioner argues that (1) the pleadings in this case have closed because petitioner has chosen not to file a Reply; (2) petitioner never had the opportunity to have Appeals consider her case and that consideration by Appeals at this juncture would be a waste of time; and (3) the FBAR penalties, the subject of respondent's Motion to Dismiss for Lack of Jurisdiction, filed March 8, 2022, are not at issue in this case.
On April 14, 2022, respondent filed a First Supplement to Motion for Continuance. Respondent represents that respondent's revenue agent informed respondent's counsel that she is in the process of completing the examination of petitioner's and her spouse's joint federal income tax returns for the taxable years 2006, 2007, 2008, 2009, 2010, and 2011, and will be issuing a Revenue Agent Report within the next few weeks. The revenue agent further informed that she anticipates that a statutory notice of deficiency will be issued to petitioner and her spouse within 30 days following the issuance of the Revenue Agent Report. Respondent represents that the primary issues for petitioner's taxable years 2006 through 2011 are petitioner's and her spouse's residency and beneficial ownership of Caldwell Candy Corporation and SLA Trust, the same issues present in this case and in the related case at Docket No. 13024-20. Respondent further represents that petitioner continues to object to respondent's motion.
We agree with respondent that a continuance would be appropriate in this case, given the lack of opportunity for pretrial discovery and the pending jurisdictional motion before the Court. Accordingly, we will grant respondent's motion.
Upon due consideration and for cause, it is
ORDERED that respondent's Motion for Continuance, filed March 18, 2022, and as supplemented April 14, 2022, is granted. It is further
ORDERED that this case is stricken for trial from the May 2, 2022, San Diego, California, session of the Court and is continued. It is further
ORDERED that jurisdiction is retained by the undersigned.