Opinion
7723-23L
11-28-2023
WILLIAM J. CADE AND MARY E. CADE, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Courtney D. Jones Judge
On October 26, 2023, respondent filed a Motion to Remand (Motion) asking the Court to remand this case to the Internal Revenue Service's (IRS) Independent Office of Appeals (Appeals) for further consideration. Respondent represents that "remand is appropriate to allow Appeals to investigate whether or not petitioners are precluded from raising a challenge to the underlying tax liabilities at issue in this case." (Doc. 10 at p. 5 ¶ 15).
Petitioners object to remand. (Doc. 13). According to them, they never received a notice of deficiency for either tax year at issue because the IRS "skipped the Notice of Deficiency and went directly to Levy" them. (Id. at p. 1 ¶ 1). Petitioners assert that the Notice of Determination in this case "was de facto a Notice of Deficiency" and the dispute regarding "income tax deficiency is properly before this Court and should be adjudicated" in the Tax Court. (Id. at p. 4 ¶¶ 13-14).
The record before the Court does not contain a notice of deficiency for taxable year 2018. Nonetheless, the record reflects that on March 16, 2020, a Collection Due Process Levy Notice was issued for taxable year 2018. A notice of deficiency for taxable year 2019 (2019 Notice of Deficiency) was attached to the Motion. But the 2019 Notice of Deficiency was issued on April 4, 2022, nearly one year after the IRS issued a Collection Due Process Levy Notice for taxable year 2019. The 2019 Notice of Deficiency was also issued nearly one year after the IRS issued a Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320, upon which the Notice of Determination in this case is based. Further, respondent admits that the 2019 Notice of Deficiency "was not contained within the administrative record" and was "obtained by respondent's counsel after the Notice of Determination was issued." (Doc. 10 at p. 4 n.6).
Upon due consideration and for cause, it is
ORDERED that respondent's Motion to Remand is granted, and this case is remanded to the IRS's Independent Office of Appeals for the purpose of affording petitioners an administrative hearing pursuant to I.R.C. sections 6320 and 6330. At the hearing, respondent shall consider, among other things, whether petitioners received a statutory notice of deficiency for each tax year at issue. Respondent shall also consider whether petitioners have had an opportunity to challenge their underlying tax liability for each tax year at issue. It is further
ORDERED that respondent shall offer petitioners an administrative hearing at such place as may be mutually agreed upon (or by teleconference if preferable) at a reasonable and mutually agreed upon date and time, but no later than January 22, 2024. It is further
ORDERED that on or before May 22, 2024, the parties shall file with the Court a status report (jointly if possible, otherwise separately) concerning the then-current status of this case.