Keith v. Commissioner

1987 T.C. Memo. 591, 54 T.C.M. 1228, 1987 Tax Ct. Memo LEXIS 590
CourtUnited States Tax Court
DecidedDecember 1, 1987
DocketDocket No. 2097-86.
StatusUnpublished
Cited by1 cases

This text of 1987 T.C. Memo. 591 (Keith 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
Keith v. Commissioner, 1987 T.C. Memo. 591, 54 T.C.M. 1228, 1987 Tax Ct. Memo LEXIS 590 (tax 1987).

Opinion

M. DALE AND CLETA F. KEITH, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Keith v. Commissioner
Docket No. 2097-86.
United States Tax Court
T.C. Memo 1987-591; 1987 Tax Ct. Memo LEXIS 590; 54 T.C.M. (CCH) 1228; T.C.M. (RIA) 87591;
December 1, 1987.
Paul H. Levine, for the petitioners.
Irene Scott Carrol, for the respondent.

WRIGHT

MEMORANDUM OPINION

WRIGHT, Judge: This matter is before the Court on respondent's motion to dismiss for lack of jurisdiction. Petitioners opposed the motion by written response and a hearing was held at a trial session of the Court in Los Angeles, California. *591 At the conclusion of the hearing, the motion was taken under advisement.

The issue for our determination is whether the notice of deficiency was mailed to petitioners at their "last known address" within the meaning of section 6212(b). 1

On January 23, 1986, petitioners, husband and wife, filed a petition in this Court with respect to their 1980 taxable year. 2 Petitioners allege therein that they never received a notice of deficiency from respondent for that year. Petitioners further contend that they were not aware that a deficiency had been determined against them until November 1985, when they received a letter from the Fresno Service Center of the Internal Revenue Service advising them that an assessment had been made on September 3, 1984.

In early February 1984, petitioners moved from Woodland Hills, California, where they had resided since 1971, to Huntington Beach. At the time petitioners moved, they advised the Postal Service to forward their*592 mail to their office address in Irvine, California. Throughout 1984 and continuing through most of 1985, petitioners regularly received mail at their Irvine office which had been forwarded from their Woodland Hills address. Petitioners have no recollection of whether the Postal Service delivered a certified letter. Petitioners admitted, however, that they do not necessarily collect certified letters addressed to them because they believe that ordinary mail is a sufficient way to communicate.

Petitioners' 1983 Federal income tax return was mailed to the Fresno Service Center on or about March 10, 1984. The address shown on that return was 2112 Greenboro Lane, Huntington Beach, California 92646. A statutory notice of deficiency was mailed by certified mail to petitioners on April 16, 1984, regarding their 1980 taxable year. The notice was sent to petitioners at 4346 Manson Avenue, Woodland Hills, California 91364, the address shown on petitioners' 1980 tax return. On or about April 30, 1984, petitioners received a refund with respect to taxable year 1983 from the Internal Revenue Service which was mailed to their Huntington Beach address. Petitioners contend that respondent, *593 at the time of mailing the notice of deficiency to them, had notice of their new address at Huntington Beach as a result of the new address shown on petitioners' 1983 return. Thus, petitioners contend that the notice of deficiency was not sent to their "last known address" and is therefore invalid.

Section 6213(a) provides that a petition must be filed within 90 days, or 150 days if the notice is addressed to a person outside of the United States after the notice of deficiency is issued. The petition in this case was not timely filed. However, it is well settled that to maintain an action in this Court, there must be valid notice of deficiency and a timely petition. See Pyo v. Commissioner,83 T.C. 626, 632 (1984); Mollet v. Commissioner,82 T.C. 618, 623 91984), affd. without published opinion 757 F.2d 286 (11th Cir. 1985); Keeton v. Commissioner,74 T.C. 377, 379 (1980). A valid notice of deficiency has been issued if its is mailed to the taxpayer's last known address by certified or registered mail. Sec. 6212(a) and (b)(1).

The question before us is whether respondent had reasonable knowledge of the fact that*594 petitioners' address had changed from Woodland Hills to Huntington Beach when respondent mailed the deficiency notice. This is, of course, a question of fact. Maxfield v. Commissioner,153 F.2d 325, 327 (9th Cir. 1946). The Internal Revenue Service, as a general rule, is entitled to treat the address appearing on the return for the year in question as the last known address, absent "clear and concise notification" of a new address. Alta Sierra Vista, Inc. v. Commissioner,62 T.C. 367, 374 (1974), affd. without published opinion 538 F.2d 334 (9th Cir. 1976). We recognize that the "last known address" to which the notice of deficiency is mailed assumes great importance in the taxpayer's ability to obtain a prepayment judicial redetermination of his tax liabilities.

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1987 T.C. Memo. 591, 54 T.C.M. 1228, 1987 Tax Ct. Memo LEXIS 590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keith-v-commissioner-tax-1987.