Opinion
9706-21
12-16-2021
Eberardo M. Mendez Petitioner v. Commissioner of Internal Revenue Respondent
ORDER
MAURICE B. FOLEY, CHIEF JUDGE
On June 4, 2021, the Court issued an Order directing petitioner to show cause in writing why the small tax case designation in this case should not be removed. For the small tax case election to be valid, the "amount of the deficiency placed in dispute" may not exceed $50,000 for any one taxable year. Sec. 7463(a), (e); Kallich v. Commissioner, 89 T.C. 676, 679-680 (1987). Due to inadvertent clerical error, petitioner's Letter Dated July 5, 2021 responding to the June 4, 2021, Order To Show Cause was not filed in this case. As a result, on August 24, 2021, the Court issued an Order which, among other things, (1) made that Order To Show Cause absolute, and (2) deleted the letter "S" from the docket number in this case.
In his above Letter Dated July 5, 2021, petitioner states that the "amount of the deficiency in dispute" in this proceeding is the amount of the substantial tax understatement penalty pursuant to section 6662(a) that respondent determined in the notice of deficiency for tax year 2017 on which this case is based. As that amount, $11,124, is significantly less than the jurisdictional maximum for small tax cases, the Court concurs with petitioner's election to conduct this case as a small tax case. The foregoing considered and for cause, it is
ORDERED that the Order issued August 24, 2021, is hereby vacated in that (1) the Order To Show Cause is no longer made absolute, and (2) the letter "S" is not deleted from the docket number in this case.
ORDERED that the Court's Order To Show Cause, issued June 4, 2021, is hereby discharged.