William J. Spain & Idovia A. Spain

CourtUnited States Tax Court
DecidedMay 11, 2021
Docket18887-19
StatusUnpublished

This text of William J. Spain & Idovia A. Spain (William J. Spain & Idovia A. Spain) 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
William J. Spain & Idovia A. Spain, (tax 2021).

Opinion

T.C. Memo. 2021-58

UNITED STATES TAX COURT

WILLIAM J. SPAIN AND IDOVIA A. SPAIN, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent

Docket No. 18887-19L. Filed May 11, 2021.

William J. Spain and Idovia A. Spain, pro sese.

Alicia E. Elliott and Rachael J. Zepeda, for respondent.

MEMORANDUM OPINION

LAUBER, Judge: Currently before the Court is a motion by the Internal

Revenue Service (IRS or respondent) to dismiss this case for lack of jurisdiction

on the ground that the petition was not filed within the time prescribed by section

Served 05/11/21 -2-

[*2] 6330(d)(1).1 Petitioners contend that the petition was timely mailed and so

should be deemed timely filed under section 7502. Finding that petitioners have

not carried their burden of proving that the petition was timely mailed, we will

grant respondent’s motion.

Background

The following facts are derived from the parties’ pleadings, motion papers,

and the exhibits and declarations attached thereto. Petitioners resided in Arizona

when they petitioned this Court.

The IRS issued petitioners a notice of deficiency for 2014 and assessed the

tax after the time to petition this Court had expired. When they failed to pay the

tax, the IRS sent them a notice of intent to levy. They timely sought a collection

due process (CDP) hearing, seeking to challenge their underlying tax liability for

2014.

During the hearing the settlement officer (SO) explained that petitioners

were not entitled to challenge their underlying liability because they had received

a notice of deficiency. See sec. 6330(c)(2)(B). Petitioners did not propose a

collection alternative, and the SO closed the case. The SO noted that petitioners

1 All statutory references are to the Internal Revenue Code in effect at all relevant times, and all Rule references are to the Tax Court Rules of Practice and Procedure. -3-

[*3] had a pending request for audit reconsideration, which is conducted

separately from CDP proceedings. See Durda v. Commissioner, T.C. Memo.

2017-89, 113 T.C.M. (CCH) 1420, 1422 n.3.

The IRS issued petitioners separate notices of determination dated Septem-

ber 10, 2019, sustaining the collection action. Tracking data from the U.S. Postal

Service (USPS) show that these notices were mailed the following day and deliv-

ered to petitioners on September 16, 2019. The notices advised petitioners: “If

you want to dispute this determination in court, you must file a petition with the

United States Tax Court within 30 days from the date of this letter.” See sec.

6330(d)(1). Because the notices were mailed on September 11, 2019, the 30-day

period expired on Friday, October 11, 2019. Cf. Bongam v. Commissioner, 146

T.C. 52, 58 (2016).

The Court received a petition from petitioners on October 21, 2019. That

date was 40 days after the IRS issued the notices of determination. Petitioners

disputed their underlying liability for 2014 and asked the Court to “plac[e] a hold

on collections until the * * * [IRS] has had the opportunity to complete the audit

reconsideration process and process the related amended income tax return.”

The petition, which lacked original signatures, was dated October 10, 2019.

The envelope in which the petition was mailed was properly addressed to the Tax -4-

[*4] Court. The envelope bears U.S. postage of $1.75, evidently affixed by a

Pitney Bowes postage meter, and it appears to have been delivered to the Court by

USPS. However, the envelope bears no postmark and has no other marking

affixed by USPS.

On December 12, 2019, respondent sent petitioners a letter explaining that

the petition had not been filed within the 30-day period prescribed by section

6330(d)(1). Respondent advised petitioners that he would move to dismiss the

case unless they supplied “receipts or other documents showing when the Petition

was mailed.” On December 18, 2019, petitioners’ accountant, Richard Shapiro,

replied with a letter in which he stated that the petition had been signed by peti-

tioners on October 10, 2019, and mailed that same day from his office in Scotts-

dale, Arizona. However, Mr. Shapiro supplied no “receipts or other documents”

as respondent had requested.

On January 15, 2021, respondent filed a motion to dismiss for lack of juris-

diction, to which we ordered petitioners to respond by February 22, 2021. On

February 26, 2021, we received a letter from Mr. Shapiro.2 This letter includes no

2 Mr. Shapiro has not entered an appearance on behalf of petitioners, and petitioners did not sign his letter. See Rule 23(a)(3) (providing that paper filings “shall bear the original signature of the party’s counsel, or of the party personally if the party is self-represented”). -5-

[*5] evidence showing that the petition was timely mailed. Rather, Mr. Shapiro

attached a copy of his December 18, 2019, letter to respondent’s counsel and re-

quested that petitioners “be provided their opportunity to review their case through

[the] appeals process.”

Discussion

This Court is a court of limited jurisdiction, and we may exercise

jurisdiction only to the extent expressly authorized by Congress. Naftel v.

Commissioner, 85 T.C. 527, 529 (1985); Breman v. Commissioner, 66 T.C. 61, 66

(1976). “Jurisdiction must be shown affirmatively, and petitioner[s], as the

part[ies] invoking our jurisdiction * * *, bear[] the burden of proving that we have

jurisdiction.” David Dung Le, M.D., Inc. v. Commissioner, 114 T.C. 268, 270

(2000), aff’d, 22 Fed. Appx. 837 (9th Cir. 2001). To meet this burden,

“petitioner[s] must establish affirmatively all facts giving rise to our jurisdiction.”

Ibid.

Section 6330(d)(1) provides that a taxpayer “may, within 30 days of a deter-

mination under this section, petition the Tax Court for review of such determina-

tion (and the Tax Court shall have jurisdiction with respect to such matter).” The

30-day period commences on the day after the date on which the notice of deter-

mination was issued. Sec. 301.6330-1(f)(2), Q&A-F1, Proced. & Admin. Regs. If -6-

[*6] the taxpayer does not file his petition within this 30-day period, the Court

lacks jurisdiction to review the IRS collection action. See Guralnik v.

Commissioner, 146 T.C. 230, 235-238 (2016); Orum v. Commissioner, 123 T.C. 1

(2004), aff’d, 412 F.3d 819 (7th Cir. 2005); Sarrell v. Commissioner, 117 T.C.

122, 125 (2001). For petitioners this 30-day period expired on Friday, October 11,

2019.

Section 7502(a) provides a “timely mailed, timely filed” rule. A document

delivered by U.S. mail is timely mailed if “the postmark date falls * * * on or be-

fore the prescribed date” and the document is mailed, on or before that date, in an

envelope with “postage prepaid, properly addressed” to the recipient. Id. para. (2).

If those conditions are met, “the date of the United States postmark stamped on the

cover in which such * * * document * * * is mailed shall be deemed to be the date

of delivery.” Id. para. (1). The parties agree that the envelope in which the peti-

tion was mailed was properly addressed to the Tax Court and that the envelope

bears no U.S. postmark. They disagree as to whether the envelope was deposited

in the U.S. mail on or before October 11, 2019.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Robinson v. Commissioner
2000 T.C. Memo. 146 (U.S. Tax Court, 2000)
Bongam v. Comm'r
146 T.C. No. 4 (U.S. Tax Court, 2016)
Guralnik v. Comm'r
146 T.C. No. 15 (U.S. Tax Court, 2016)
Durda v. Comm'r
2017 T.C. Memo. 89 (U.S. Tax Court, 2017)
Sarrell v. Comm'r
117 T.C. No. 11 (U.S. Tax Court, 2001)
Orum v. Comm'r
123 T.C. No. 1 (U.S. Tax Court, 2004)
Sylvan v. Commissioner
65 T.C. 548 (U.S. Tax Court, 1975)
Breman v. Commissioner
66 T.C. 61 (U.S. Tax Court, 1976)
Mason v. Commissioner
68 T.C. 354 (U.S. Tax Court, 1977)
Naftel v. Commissioner
85 T.C. No. 30 (U.S. Tax Court, 1985)
Tokarski v. Commissioner
87 T.C. No. 5 (U.S. Tax Court, 1986)
Kauffman v. Commissioner
1993 T.C. Memo. 494 (U.S. Tax Court, 1993)
Lumber Prods.
1992 T.C. Memo. 728 (U.S. Tax Court, 1992)
David Dung Le, M.D., Inc. v. Commissioner
22 F. App'x 837 (Ninth Circuit, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
William J. Spain & Idovia A. Spain, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-j-spain-idovia-a-spain-tax-2021.