Paul v. Commissioner

1985 T.C. Memo. 21, 49 T.C.M. 517, 1985 Tax Ct. Memo LEXIS 606
CourtUnited States Tax Court
DecidedJanuary 14, 1985
DocketDocket No. 20773-82.
StatusUnpublished

This text of 1985 T.C. Memo. 21 (Paul 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
Paul v. Commissioner, 1985 T.C. Memo. 21, 49 T.C.M. 517, 1985 Tax Ct. Memo LEXIS 606 (tax 1985).

Opinion

LAWRENCE M. PAUL AND ISABELLE PAUL, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Paul v. Commissioner
Docket No. 20773-82.
United States Tax Court
T.C. Memo 1985-21; 1985 Tax Ct. Memo LEXIS 606; 49 T.C.M. (CCH) 517; T.C.M. (RIA) 85021;
January 14, 1985.

*606 Petitioners submitted to the IRS a duly executed power of attorney authorizing the attorney "[t]o receive directly, and solely, at his address all notices and communications addressed to the taxpayers." (Emphasis added.) Approximately 4 months later respondent mailed the original notice of deficiency to the petitioners and a copy to their attorney. Petitioners timely filed their petition with this Court on the 66th day after the notice of deficiency was mailed. Held, the attorney's address was petitioners' "last known address." Held further, the notice of deficiency was valid even though not mailed to petitioners at their "last known address." Held further, respondent's Motion for Partial Summary Judgment is granted.

K. G. Seitz, for the petitioners.
Genevieve K. Murtaugh and Keith A. Aqui, for the respondent.

CANTREL

MEMORANDUM OPINION

CANTREL, Special Trial Judge: This case came before the Court for hearing, consideration and ruling on respondent's motion for partial summary judgment filed on December 17, 1982. 1 In his motion, respondent seeks*608 a ruling that the notice of deficiency is valid.

The material facts are not disputed. On June 11, 1982 respondent, by certified mail, sent the original notice of deficiency for the taxable year 1979 to petitioners at their residence, 9200 Shawnee Run Road, Cincinnati, Ohio 45243. Respondent mailed a copy of that notice to petitioners' authorized representative, K. G. Seitz, Esq., at 4321 Hamilton Avenue, Cincinnati, Ohio 45223. On February 1, 1982, several months before respondent mailed the notice of deficiency, petitioners had submitted to respondent a duly executed power of attorney. The power of attorney recites in pertinent part:

The attorney-in-fact is authorized, subject to revocation, to receive confidential information and to perform on behalf of the taxpayer the following acts for the above tax matters among the powers generally granted;

* * *

To receive directly, and solely, at his address, all notices and communications addressed to the taxpayers in proceedings involving the above matters, and to that end all persons are requested to direct such notices and communications*609 to him.

Petitioners through their attorney filed their petition with this Court on August 16, 1982, the 66th day after the mailing of the notice of deficiency. In their petition, they allege that the "notice of deficiency * * * appears to be invalid." In support thereof, petitioners point out that their last known address was that of their attorney and respondent merely mailed a copy of the notice there. Respondent filed his answer on October 4, 1982 in which he denied the allegations set forth in the petition.

On December 17, 1982 respondent filed a Motion for Partial Summary Judgment and supporting memorandum pursuant to Rule 121(a). 2 Respondent contends that the notice of deficiency is valid because petitioners actually received the notice of deficiency and filed a timely petition with the Court. Respondent's motion was calendared for hearing at the Motions Session of the Court at Washington, D.C., on January 26, 1983. No appearance was made by or on behalf of petitioners. However, the Court did have before it for consideration petitioners' Memorandum in Lieu of Attendance filed on January 24, 1983 pursuant to Rule 50(c). At the conclusion of the hearing this*610 Court took respondent's motion under advisement.

Our jurisdiction in defidiency cases depends upon the Commissioner's issuing a valid notice of deficiency to the taxpayer and the taxpayer's timely filing his petition in this Court. If jurisdiction is lacking because respondent failed to issue a valid notice of deficiency, we will dismiss on that ground rather than for lack of timely filing a petition. O'Brien v. Commissioner,62 T.C. 543, 548 (1974); Shelton v. Commissioner,63 T.C. 193 (1974).

In the instant case the petition was timely filed based upon the June 11, 1982 mailing of the notice of deficiency. Consequently we are confronted with the issue of whether the "last known address" provision of section 6212(b)(1) 3 is a legal requirement for a notice of deficiency to be valid to begin the 90-day period for filing the petition (provided in section 6213) and consequently to toll the statute of limitations under section 6501(a).

This issue was addressed by this*611 Court in Frieling v. Commissioner,81 T.C. 42 (1983), and Mulvania v. Commissioner,81 T.C. 65 (1983). In both Frieling and Mulvania, this Court determined that a notice of deficiency need not be sent to the taxpayer's "last known address" to be valid.

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1985 T.C. Memo. 21, 49 T.C.M. 517, 1985 Tax Ct. Memo LEXIS 606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paul-v-commissioner-tax-1985.