Opinion
8541-20
07-27-2022
JAMIE B. HALL, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Alina I. Marshall Judge
On January 13 and March 2, 2020, respondent issued petitioner notices of deficiency for the 2017 and 2016 tax years, respectively. On July 10, 2020, petitioner timely filed a petition to begin this case. On June 14, 2021, the Court conducted a trial in this case.
On July 5, 2021, petitioner filed a Motion to Dismiss, asserting therein that the Court lacks jurisdiction in this case because "the alleged statutory notices of deficiency upon which the case is based were nonexistent on the day of trial: June, 14, 2021." Petitioner attached Letters 549C, dated June 11, 2021, which advised petitioner that her accounts for the taxable years 2016 and 2017 had been adjusted to $0. Petitioner alleges that the Letters 549C, sent to her after the petition was filed in this case and before the trial of this case, rendered the notices of deficiency invalid.
On July 30, 2021, respondent filed a Response to Motion to Dismiss, asserting therein that: (1) on June 15, 2020, the Internal Revenue Service (IRS) assessed the deficiencies and additions to tax proposed in the notices of deficiency for the taxable years 2016 and 2017; (2) respondent subsequently requested that the assessments be abated because they were prematurely made; (3) the IRS properly abated the assessed amounts, but erroneously issued Letters 549C to petitioner; and (4) the Letters 549C do not represent a decision or concession by respondent.
This is a court of limited jurisdiction; we exercise jurisdiction only to the extent authorized by statute. § 7442; GAF Corp. & Subs. v. Commissioner, 114 T.C. 519, 521 (2000). Our jurisdiction to redetermine a deficiency in tax depends on a valid notice of deficiency and a timely-filed petition. § 6212(a), § 6213(a); GAF Corp. & Subs. v. Commissioner, 114 T.C. at 521. We have held that a deficiency notice is valid if it objectively places a reasonable taxpayer on notice that the Commissioner has determined a deficiency in tax for a particular year and amount. Dees v. Commissioner, 148 T.C. 1, 6 (2017). The notices of deficiency issued to petitioner satisfied these criteria and are valid.
Unless otherwise indicated, all statutory references are to the Internal Revenue Code, Title 26 U.S.C., in effect at all relevant times, and all Rule references are to the Tax Court Rules of Practice and Procedure.
Respondent's erroneous Letters 549C do not change this result. This Court stated in Ringo v. Commissioner, 143 T.C. 297, 300-01 (2014) as follows:
It is the determination of a deficiency, rather than the existence of a deficiency, that provides the basis for the Court's jurisdiction. See, e.g., Hannan v. Commissioner, 52 T.C. 787, 791 (1969). Thus, even if a determination in a notice of deficiency is erroneous or the Commissioner concedes the determination in full, the notice is generally not rendered void but continues to provide a basis for our jurisdiction. See, e.g., Charlotte's Office Boutique, Inc. v. Commissioner, 121 T.C. at 103 (stating that the Commissioner's concession of employment tax issue during a proceeding in this Court did not deprive the Court of jurisdiction over the subject matter underlying that issue); LTV Corp. v. Commissioner, 64 T.C. 589 (1975) (stating that the Commissioner's concession of no deficiency for a year did not deprive the Court of jurisdiction over the subject matter of that year); Cawal v. Commissioner, T.C. Memo. 1992-444.
The IRS' erroneous Letters 549C did not invalidate the notices of deficiency issued to petitioner for the taxable years 2016 and 2017.
Petitioner received valid notices of deficiency and timely petitioned this Court, and thus we have jurisdiction.
Upon due consideration, it is
ORDERED that petitioner's Motion to Dismiss, filed July 5, 2021, is denied.