Opinion
5624-23S
04-24-2023
ANITHA P. MANGOTHILI, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Kathleen Kerrigan, Chief Judge
By Order to Show Cause served April 18, 2023, the Court directed petitioner to show cause in writing why the Court should not issue an order directing that the small tax case designation be removed in this case. On April 23, 2023, petitioner electronically filed, inter alia, a Response to the Order to Show Cause. In the Response, petitioner acknowledges that the total of the deficiency and accuracy-related penalty determined in the Notice of Deficiency exceeds $50,000.00.
To the extent petitioner argues that income tax withheld should be considered for purposes of determining whether this case may retain the small tax case designation, the Court notes that, under the Internal Revenue Code, estimated taxes and amounts withheld from wages do not affect the amount of a taxpayer's deficiency. See I.R.C. § 6211(a), (b)(1); see also Feller v. Commissioner, 135 T.C. 497, 506 (2010) ("In calculating the deficiency, estimated tax payments and withholding credits are ignored."). To the extent petitioner argues that the amount in dispute is due to identity theft, the Court notes that such an argument goes to the merits of respondent's deficiency determination, the entirety of which petitioner has placed in dispute. Thus, as the amount of the deficiency placed in dispute for the taxable year 2020 exceeds $50,000.00, this case is ineligible for the small tax case procedures. See I.R.C. § 7463(a)(1); Rules 170 and 171, Tax Court Rules of Practice and Procedure.
Upon due consideration and for cause, it is
ORDERED that the Court's Order to Show Cause is hereby made absolute. It is further
ORDERED that the docket number of this case is amended by deleting the letter "S" therefrom, and the Clerk of the Court is hereafter directed to process this case to trial or other disposition as a regular tax case.