Opinion
11566-20L
07-28-2023
HUGO S. BERNAL & PAULA BERNAL, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Mark V. Holmes, Judge
This collection-due-process case is on the Court's October 2, 2023 trial calendar for Hartford, Connecticut. Petitioners were Massachusetts residents when they filed their petition, and since appellate venue is based on residence at the time a petition is filed, the Court looks to the law of the First Circuit. I.R.C. § 482(b)(1)(G)(i). That means the Court has to follow Murphy v. Commissioner, 469 F.3d 27, 31 (1st Cir. 2006), and review respondent's determination on the basis of the administrative record.
On July 21, 2023 the parties moved for a third continuance. This prompted us to speak with them today. It is apparent that petitioners want very much to contest their liability for the three tax years - 2014 through 2016 - at issue. Because our review is limited to the administrative record, that may be difficult, as we explained. Settlements are nevertheless to be encouraged, and the parties had already set up a meeting in late August.
To keep the case moving to a conclusion, we will not grant a third general continuance, but we will allow the parties to propose a briefing schedule that will give them some time to try to negotiate a settlement whose terms might not be achievable through litigation. It is thus
ORDERED that the parties' July 21, 2023 motion for a continuance is granted only in that this case is stricken from the Court's October 2, 2023 trial calendar for Hartford, Connecticut. It is also
ORDERED that this division of the Court retains jurisdiction of this case. It is also
ORDERED that on or before September 11, 2023, the parties stipulate to the contents of the administrative record, and file it with the Court. If they are unable to do so, respondent shall, on or before September 11, 2023, serve petitioner and file with the Court an index listing the documents that respondent asserts should be in the administrative record; and petitioners shall, on or before September 25, 2023, serve on respondent and file with the Court any additions or deletions from respondent's proposed administrative record. It is also
ORDERED that on or before September 11, 2023 the parties shall propose a briefing schedule for submission of this case for decision on the basis of the administrative record. They shall also note at that time any issues not subject to abuse-of discretion review, or other issues that might require a trial.