Opinion
5660-19
01-25-2022
JASON D. OFFUTT, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Albert G. Lauber, Judge
Petitioner failed to file Federal income tax returns for 2014 and 2016. Pursuant to I.R.C. § 6020(b) the IRS prepared substitutes for return (SFRs) on the basis of third-party reports. The IRS issued him notices of deficiency based on the SFRs, determining for 2014 and 2016 deficiencies of $35,989 and $115,143, respectively, plus additions to tax under I.R.C. §§ 6651(a)(1), (a)(2), and 6654. Petitioner timely petitioned this Court in March 2019.
In his petition petitioner included only one assignment of error, namely, concerning his entitlement to deductions. He asserted that he "purchased a business in 2016 and ha[s] several deductions that need to be applied and submitted for … 2014 and 2016." He stated that he "filed an extension for these … [years] so that [h]e can supply a clean package to [his] accountant and submit [his] filings for both 2014 and 2016."
This case was originally calendared on the Court's February 16, 2021, Albuquerque, New Mexico, trial session. On January 11, 2021, the parties filed a joint stipulation of facts, which appears to resolve any unreported income issues. On January 12, 2021, respondent filed a motion for continuance. Respondent represented that he had spoken with petitioner, who stated that he would submit returns for 2014 and 2016 and supply documentation to support claims for deductions. Petitioner stated that he would complete these tasks "within four weeks."
On January 14, 2021, we granted the motion for continuance and directed the parties to file a joint status report by April 14, 2021. On April 14, 2021, respondent filed a status report representing that petitioner had submitted an unsigned return for 2014 but that petitioner "was still obtaining documentation … for the 2016 income tax return." We ordered the parties to file another joint status report by July 7, 2021.
On July 7, 2021, respondent filed a status report without assistance from petitioner. In that report respondent represented that, after several attempts, he reached petitioner, who stated that he "had been delayed in preparing the 2016 income tax return." Respondent represented that he sent petitioner several documents, including computations based on petitioner's 2014 return and a copy of respondent's proposed status report to sign and file with the Court. Petitioner stated that he would supply information for 2016 "soon" but did not return the documents respondent requested.
Respondent filed another status report on September 24, 2021. In that report respondent represented that, after several delays, petitioner had submitted an unsigned return for 2016, but that "no substantiation ha[d] been provided" to support the deductions claimed on it. Respondent further represented that he made numerous attempts to reach petitioner before filing the status report, without success.
By Order served September 30, 2021, we directed the parties to file joint or separate status reports by November 15, 2021. We advised the parties that if they did not report meaningful progress toward resolution, then the Court would likely set the case for trial. On November 15, 2021, respondent filed a status report representing that petitioner had yet to supply any relevant documentation and that petitioner had neglected to respond to several of respondent's phone calls and emails. Petitioner did not file a status report of his own.
On January 18, 2022, respondent filed another status report in this case. Respondent represents that, since September 2021, he has attempted to communicate with petitioner on numerous occasions, without success. Respondent represents that, "[g]iven petitioner's lack of cooperation and failure to communicate," respondent may need to file a motion to dismiss for lack of prosecution. The standing pre-trial order in this case informed petitioner of his obligation to cooperate with respondent in preparing this case for trial or other disposition. Rule 123(b) of the Tax Court Rules provides that, "[f]or failure of a petitioner properly to prosecute or to comply with these Rules or any order of the Court, … the Court may dismiss a case at any time and enter a decision against the petitioner."
Upon due consideration, it is
ORDERED that, on or before March 22, 2022, respondent shall file a status report or an appropriate motion.