Opinion
19613-21S
09-23-2022
DONACIANO GUERRA & JULIETA GUERRA, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Elizabeth Crewson Paris Judge
This case is calendared for trial at the Court's October 31, 2022, Houston, Texas, trial session.
On September 20, 2022, docket entry 10, respondent filed a Motion to Remove Small Tax Case Designation which respondent requests, pursuant to Rules 50 and 171(c), that the Court enter an Order removing the small case designation from this case and that these proceedings be conducted under the Court's regular case procedures.
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's motion asserts that the total deficiency, including additions to tax, in dispute for both petitioners is $526,844.78 for the taxable year 2016. Respondent states that the addition to tax under the provisions of section 6651(a)(2) for taxable year 2016 is an amount which cannot yet be determined, as the period for which this addition to tax is computed will continue to run until the tax is paid or the maximum of 25% of the tax is reached.
Rule 170 defines as a "small tax case" a case in which the amount in dispute is $50,000.00 or less within the meaning of section7463. Section 7463 states that the deficiency, including additions to tax, placed in dispute cannot exceed $50,000.00 for any one taxable year. § 7463(a) and (e). Because the amount in dispute exceeds $50,000.00 for the taxable year 2016, the petitioners cannot elect to have proceedings conducted under the Small Tax Case Rules of the Court.
Respondent's Motion indicates that calls to petitioners were unsuccessful and therefore does not know if petitioners object to the granting of this Motion.
The Court will direct petitioners to file with the Court a response to respondent's Motion to Remove Small Tax Case Designation, filed September 20, 2022, at docket entry 10.
After due consideration, and for cause, it is
ORDERED that, on or before October 5, 2022, petitioners shall file a response to respondent's Motion to Remove Small Tax Case Designation, filed September 20, 2022, at docket entry 10.