Opinion
8691-19
09-14-2023
KRISTEN PULLEN, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Albert G. Lauber Judge
With respect to petitioner's 2015 tax year, the Internal Revenue Service (IRS or respondent) determined a deficiency of $20,763. The deficiency results from a determination that petitioner received unreported income in the form of interest ($67), dividends ($30), IRA distributions ($32,000), income from pensions and annuities ($62,785), and other income ($2,497). The IRS also determined an "additional tax" of $3,200 under section 72(t), which imposes a 10% "additional tax" on early distributions from qualified retirement plans.[
Unless otherwise indicated, statutory references are to the Internal Revenue Code, Title 26 U.S.C., in effect at all relevant times. In the notice of deficiency the IRS determined additions to tax under sections 6651 and 6654 for failure to timely file, failure to timely pay, and failure to pay estimated tax. But respondent has conceded that petitioner is not liable for any additions to tax, so they are no longer in dispute.
This case was called from the calendar during the Court's March 6, 2023, Houston, Texas, trial session. There was no appearance by or on behalf of petitioner. On April 7, 2023, respondent filed a Motion to Dismiss for Lack of Prosecution, representing that he had been unable to reach petitioner. By Order served April 14, 2023, we directed petitioner to respond to the Motion to Dismiss by May 13, 2023. After failing to receive a Response by that date, on August 11, 2023, we issued an Order giving petitioner another chance to respond.
On September 8, 2023, the petitioner timely filed a handwritten Response to our Order. She contends that she did not receive in 2015 income from pensions and annuities in the amount of $62,875. She also alleges that the IRA distributions she received in 2015 totaled only $20,753 and did not constitute taxable income because the distributions were merely a "loan that [she] took out from [her] 401-K" to pay for her son's medical treatment. See § 72(t)(2)(B) (providing an exception to otherwise taxable early distributions from qualified retirement plans for distributions made to cover the costs of certain medical care).
In light of petitioner's Response, we will deny respondent's Motion to Dismiss at this time. We encourage petitioner to reach out to respondent's counsel in an effort to resolve some or all of the issues in this case. Petitioner should also supply respondent's counsel with any documents on which she relies to substantiate the claims made in her Response.
In consideration of the foregoing, it is
ORDERED that respondent's Motion to Dismiss for Lack of Prosecution, filed April 7, 2023, is denied at this time without prejudice. It is further
ORDERED that the parties shall file with the Court, on or before October 30, 2023, a status report (jointly if possible, otherwise separately) detailing the then-present status of the case.
The Court encourages all litigants to register for DAWSON (Docket Access Within a Secure Online Network), the U.S. Tax Court's electronic filing and case management system. By registering, litigants may electronically file and view documents in their Tax Court case. Taxpayers who currently file in paper form or receive paper service from the Court, as petitioner does, may register for DAWSON by sending an email to dawson.support@ustaxcourt.gov.