Hubbard v. Comm'r

1987 T.C. Memo. 575, 54 T.C.M. 1121, 1987 Tax Ct. Memo LEXIS 578
CourtUnited States Tax Court
DecidedNovember 23, 1987
DocketDocket No. 9008-87.
StatusUnpublished
Cited by1 cases

This text of 1987 T.C. Memo. 575 (Hubbard v. Comm'r) 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
Hubbard v. Comm'r, 1987 T.C. Memo. 575, 54 T.C.M. 1121, 1987 Tax Ct. Memo LEXIS 578 (tax 1987).

Opinion

CHARLES E. HUBBARD, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Hubbard v. Comm'r
Docket No. 9008-87.
United States Tax Court
T.C. Memo 1987-575; 1987 Tax Ct. Memo LEXIS 578; 54 T.C.M. (CCH) 1121; T.C.M. (RIA) 87575;
November 23, 1987; Reversed and Remanded April 12, 1989
*578

P executed special consents (Forms 872-A) extending the statute of limitations for the taxable years 1976 through 1979. R issued a notice of deficiency on November 13, 1985 for these tax years. The notice was not sent to P's last known address and not received by him. In April and May of 1986, P became aware of the November 13, 1985 notice of deficiency. R issued a new notice of deficiency for the same tax years to P's last known address on March 31, 1987. A timely petition was filed with respect to this notice. Held, P's Motion for Summary Judgment is granted in that the statute of limitations expired with respect to the taxable years 1976 through 1979 prior to the issuance of the March 31, 1987 notice of deficiency. Roszkos v. Commissioner,87 T.C. 1255 (1986), on appeal (9th Cir., July 14, 1987). Held further, P's Motion for Reconsideration of our Order granting removal of small tax case designation is denied.

Geoffrey J. O'Connor, for the petitioner.
Oksana O. Xenos, for the respondent.

PANUTHOS

MEMORANDUM OPINION

PANUTHOS, Special Trial Judge: This matter came before the Court on petitioner's Motion for Summary Judgment and petitioner's Motion for Reconsideration of our *579 Order granting removal of small tax case designation. 1 By notice of deficiency, dated March 31, 1987, respondent determined deficiencies in petitioner's 1976, 1977, 1978, and 1979 Federal income taxes in the amounts of $ 8,569.89, $ 8,334.40, $ 8,404.02, and $ 5,789.40, respectively. The notice of deficiency also determined additional interest under section 6621(c) 2 for an underpayment due to a tax motivated transaction. The petition herein was filed on April 10, 1987. 3

Summary Judgment

Petitioner seeks summary judgment on the ground that the statute of limitations on assessment and collection expired more than 90 days prior to the issuance of the *580 March 31, 1987 notice which initiated this case. The issues presented in this case are substantially similar to the issues recently decided in Roszkos v. Commissioner,87 T.C. 1255 (1986), on appeal (9th Cir., July 14, 1987) and Knapp v. Commissioner,T.C. Memo. 1987-178, on appeal (6th Cir., September 21, 1987). 4

For each of the four taxable years, petitioner, along with the appropriate representative of respondent, timely executed Forms 872-A (Special Consent(s) to Extend the Time to Asses Tax, hereinafter "open-ended consents"). The pertinent terms of the open-ended consents are as follows:

[T]axpayer(s) * * * and [respondent] consent and agree as follows:

(1) The amount(s) of any Federal -- tax due on any return(s) made by or for the above taxpayer(s) for the period(s) ended --, may be assessed on or before the 90th (ninetieth) day after: (a) the Internal Revenue Service office considering the case receives Form 872-T, Notice of Termination of Special Consent to Extend Time to Assess Tax, from the taxpayer(s); or (b) the Internal Revenue Service mails Form 872-T to the taxpayer(s); or (c) the Internal Revenue Service mails *581 a notice of deficiency for such period(s). However, if a notice of deficiency is sent to the taxpayer(s), the time for assessing the tax for the period(s) stated in the notice of deficiency will be further extended by the number of days the assessment was previously prohibited, plus 60 days. A final adverse determination subject to declaratory judgment under section 7428, 7476, or 7477 of the Internal Revenue Code will not terminate this agreement.

Prior to the issuance of the March 31, 1987 notice, respondent had, on November 13, 1985, issued a notice of deficiency for the same years determining deficiencies in the same amounts as the March 31, 1977 notice of deficiency. The notice was not sent to petitioner's last known address and petitioner did not receive the notice. In April and May of 1986, petitioner received correspondence from respondent informing him that the tax as determined in the November 13, 1985 notice of deficiency had been assessed. On May 27, 1986, in response to petitioner's inquiries, a representative of the Internal Revenue Service, in a handwritten cover letter, forwarded a copy of the November 13, 1985 notice of deficiency to petitioner. Thereafter, a *582 petition was filed on June 26, 1986. 5

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1987 T.C. Memo. 575, 54 T.C.M. 1121, 1987 Tax Ct. Memo LEXIS 578, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hubbard-v-commr-tax-1987.