ESTATE OF BISKIS v. COMMISSIONER

2001 T.C. Memo. 94, 81 T.C.M. 1531, 2001 Tax Ct. Memo LEXIS 122
CourtUnited States Tax Court
DecidedApril 17, 2001
DocketNo. 287-00
StatusUnpublished

This text of 2001 T.C. Memo. 94 (ESTATE OF BISKIS v. COMMISSIONER) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ESTATE OF BISKIS v. COMMISSIONER, 2001 T.C. Memo. 94, 81 T.C.M. 1531, 2001 Tax Ct. Memo LEXIS 122 (tax 2001).

Opinion

ESTATE OF KESTUTIS BISKIS, DECEASED, MEILUTE BISKIS, INDEPENDENT ADMINISTRATOR AND MEILUTE BISKIS, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ESTATE OF BISKIS v. COMMISSIONER
No. 287-00
United States Tax Court
T.C. Memo 2001-94; 2001 Tax Ct. Memo LEXIS 122; 81 T.C.M. (CCH) 1531;
April 17, 2001, Filed

*122 An appropriate order will be issued.

Dominic S. Rizzo, for petitioners.
Marie E. Small, for respondent.
Panuthos, Peter J.

PANUTHOS

MEMORANDUM OPINION

PANUTHOS, CHIEF SPECIAL TRIAL JUDGE: This case is before the Court on petitioners' Motion to Dismiss for Lack of Jurisdiction filed pursuant to Rule 40. 1 Petitioners contend that we lack jurisdiction because the notice of deficiency was invalid. Further, petitioners argue that respondent is barred from proceeding in this case because the 3-year statute of limitations period provided by section 6501(a) expired.

BACKGROUND

At the time of filing the petition, petitioner Meilute Biskis resided in Downers Grove, Illinois. All references to petitioner are to Meilute Biskis.

Kestutis Biskis (Mr. Biskis) and petitioner jointly filed their Federal*123 income tax return for taxable year 1995 on October 17, 1996. Mr. Biskis died on May 28, 1997, in Lithuania.

On September 8, 1999, petitioner submitted to respondent Form 2848 (Power of Attorney and Declaration of Representative) appointing Vytautas Vebeliunas, an accountant, to represent petitioner and the estate of Mr. Biskis for taxable year 1995. Petitioner requested that Mr. Vebeliunas receive all original communications from respondent, and all copies should be sent to petitioner. On September 30, 1999, Ms. Winslow, an Internal Revenue Service (IRS) tax auditor, notified petitioners and Mr. Vebeliunas that petitioner had failed to file Form 56 (Letter of Testamentary and Death Certificate) which was required to validate Form 2848 as to the estate of Mr. Biskis.

On October 6, 1999, respondent mailed by certified mail a notice of deficiency addressed to Mr. Biskis and petitioner at 5705 Janes Avenue, Downers Grove, Illinois. The notice determined a deficiency in their joint income tax for 1995. On October 23, 1999, petitioner received the notice wrapped in a plastic bag. The envelope in which the statutory notice was contained was ripped, and a letter of apology from a manager*124 of a branch of the U.S. Postal Service (USPS) was affixed to the envelope or plastic bag. Respondent did not send the original or a copy of the notice of deficiency for taxable year 1995 to Mr. Vebeliunas. Upon receipt of the notice of deficiency, petitioner immediately forwarded the notice to Mr. Vebeliunas.

Respondent sent a copy of the notice of deficiency to petitioners on December 2, 1999. 2 Respondent did not send an original or a copy of the notice of deficiency to Mr. Vebeliunas. On January 6, 2000, petitioners filed a timely petition with this Court.

Petitioners filed the instant motion, asserting that the notice of deficiency was invalid, because the original notice was not sent to the individual listed on Form 2848. Further, petitioners argue that even if the notice was valid, it was untimely since it was not properly mailed, and it was received by petitioners after the period of limitations expired.

Respondent asserts that the notice of deficiency*125 was valid, even if it was not mailed to petitioners' last known address, because the notice was actually received by petitioners and petitioners filed a timely petition with this Court. Further, respondent argues the period of limitations was tolled on October 6, 1999, by the timely mailing of the notice of deficiency.

DISCUSSION

A. VALIDITY OF THE STATUTORY NOTICE

Section 6212(a) provides that the Secretary is authorized to send a notice of deficiency to a taxpayer by certified mail or registered mail. If a notice of deficiency is mailed to a taxpayer within the United States, the taxpayer may file a petition in this Court within 90 days after the notice of deficiency is mailed. See sec. 6213(a). A valid notice of deficiency and a timely petition are prerequisites to the jurisdiction of the Tax Court. See Wilt v. Commissioner, 60 T.C. 977 (1973).

Section 6212(b)(1) permits respondent to mail the notice to a taxpayer's last known address. Section 6212(b)(1) is not a mandatory provision; rather, it is a safe harbor that does not require respondent to establish actual delivery for a valid notice. See St. Joseph Lease Capital Corp. v. Commissioner, 235 F.3d 886, 888-889 (4th Cir. 2000),*126 affg.

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Cite This Page — Counsel Stack

Bluebook (online)
2001 T.C. Memo. 94, 81 T.C.M. 1531, 2001 Tax Ct. Memo LEXIS 122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-biskis-v-commissioner-tax-2001.