2013 Tax Ct. Memo LEXIS 270
Tax Ct.2013Background
- Petitioner failed to file returns for 1993–1995; IRS prepared substitutes and assessed tax, additions, and interest in April 2000. Notices of Federal Tax Lien (NFTLs) were filed (Texas 2001; Oregon 2005). Petitioner did not request a CDP hearing in response to the 2001 CDP notice.
- Because respondent did not refile the Texas and Oregon NFTLs, those notices expired by their own terms on May 17, 2010, and thus operated as certificates of release of lien.
- IRS concluded the releases were issued in error, revoked the certificate of release for the Oregon filing (Form 12474(A)) and recorded a reinstated NFTL in June 2011; petitioner submitted a Form 12153 (6/22/2011) seeking an Appeals hearing.
- The Appeals Office issued a letter (Apr. 4, 2012) denying petitioner relief on the ground he missed the earlier CDP deadline; petitioner filed a Tax Court petition May 7, 2012.
- The Court held it lacked jurisdiction to review the April 2000 assessments (petitioner forfeited CDP rights by failing to request timely review), but had jurisdiction to review the October 2008 assessments (petitioner timely requested review of the 2011 NFTL regarding those 2008 additions). The Court remanded for an Appeals hearing and a supplemental determination as to the 2008 assessments.
Issues
| Issue | Thompson's Argument | Commissioner’s Argument | Held |
|---|---|---|---|
| Whether revocation-of-release filings (Form 12474(A)) create a new CDP hearing opportunity for earlier assessments (Apr. 2000) | Form 12474(A) and subsequent filings gave Thompson a new right to administrative and judicial review | Revocation under §6325(f)(2) is a statutory reinstatement procedure, not a new CDP notice; no new CDP right for prior NFTLs | Held for Commissioner: revocation did not create a new CDP right for April 2000 assessments; Court lacks jurisdiction over those items |
| Whether the Appeals Office letter (Apr. 4, 2012) is a notice of determination for claims properly before Appeals | The denial letter should be treated as an equivalent notice of determination permitting Tax Court review | The letter is not a notice of determination for matters already foreclosed by prior missed CDP deadlines | Mixed: letter is not a determination as to April 2000 assessments, but is an equivalent notice as to timely-challenged 2008 assessments |
| Whether Thompson timely requested a CDP hearing as to the 2011 NFTL (re: Oct. 2008 assessments) | Thompson’s Form 12153 (received 6/23/2011) was timely (filed within 5 business days after NFTL filing; deemed filed at start of 30-day period) | IRS could not show Form 12153 was untimely | Held for Thompson as to 2008 additions: request was timely; Appeals erred in denying hearing; Tax Court has jurisdiction over 2008 assessments |
| Relief and disposition | Seek full review of all assessments and proposed levy | Dismiss untimely claims; remand timely claims to Appeals | Petition dismissed/stricken insofar as it challenges April 2000 assessments; remanded to Appeals for hearing and supplemental determination on Oct. 2008 assessments |
Key Cases Cited
- Naftel v. Commissioner, 85 T.C. 527 (explaining Tax Court's limited jurisdiction)
- Moorhous v. Commissioner, 116 T.C. 263 (jurisdiction under §§6320/6330 depends on a valid notice of determination)
- Lunsford v. Commissioner, 117 T.C. 159 (written notice embodying determination and timely petition establish jurisdiction)
- Craig v. Commissioner, 119 T.C. 252 (Appeals decision letter from an equivalent hearing can serve as a notice of determination)
- Kennedy v. Commissioner, 116 T.C. 255 (no jurisdiction where taxpayer failed to timely request CDP hearing)
- Inv. Research Assocs., Inc. v. Commissioner, 126 T.C. 183 (failure to timely request CDP hearing bars later challenge to subsequent NFTLs for same periods)
- Andre v. Commissioner, 127 T.C. 68 (timing rules for CDP requests; five-business-day rule)
- Freije v. Commissioner, 131 T.C. 1 (one administrative hearing generally available per CDP notice)
- Hoyle v. Commissioner, 136 T.C. 463 (discussing effect of reinstated lien under §6325(f)(2))
- Tracey v. United States (In re Tracey), 394 B.R. 635 (NFTL is filed when received by recording office)