Opinion
2161-23S
06-12-2023
TIM PETERS, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Kathleen Kerrigan Chief Judge
On February 28, 2023, the Court issued an Order to Show Cause. That Order directed petitioner to show cause in writing why the Court should not issue an Order removing the small tax case designation, as it appeared from the petition that the amount in dispute for tax year 2020 exceeds $50,000.00 and, therefore, this case cannot proceed as a "small tax case" under Internal Revenue Code (I.R.C.) section 7463.
On April 17, 2023, petitioner filed a Letter Dated April 5, 2023. Petitioner indicates in that letter that he has filed an amended return for 2020 and paid additional tax in the amount of $4,615.00. Petitioner contends, therefore, that because the additional amount owed was well under $50,000.00, this case should remain designated as a small tax case.
Under I.R.C. section 7463, in order to determine whether a case may be conducted under the small tax case procedures, we do not look at the correct amount of tax owed, but the amount of deficiency in dispute, including additions to tax and penalties. However, as petitioner has paid an additional $4,615.00, it appears that much of the proposed deficiency is no longer in dispute. Because $4,615.00 of the proposed deficiency is no longer disputed, the amount in dispute in this case now does not exceed $50,000.00. This case, therefore, may continue as a small tax case.
Upon due consideration of the foregoing, it is
ORDERED that petitioner's Letter Dated April 5, 2023, is recharacterized as a Response to Order to Show Cause. It is further
ORDERED that the Court's above-referenced Order to Show Cause is discharged.