Page 109 - TaxAdviser_Jan_Apr23_Neat
P. 109
TAX TRENDS
Analysis of and reflections on
recent cases and rulings.
Author: in the notice of deficiency until Sept. 2,
James A. Beavers, CPA, CGMA, Practice & Procedures one day after the filing deadline. In its
J.D., LL.M. petition, Hallmark gave as an excuse
90-day deadline for filing Tax for the late filing that its CPA had
Court petition in deficiency contracted COVID-19. The Tax Court,
case is jurisdictional following its long-standing precedent
Despite the Supreme Court’s decision in that the Sec. 6213(a) filing deadline is
Boechler, 142 S. Ct. 1493 (2022), hold- jurisdictional, dismissed the case for lack
ing that the Sec. 6330(d)(1)(a) 30-day of jurisdiction.
deadline to file a petition for review of a Three weeks after the Tax Court
Deadline for filing a Collection Due Process (CDP) hearing dismissed the case, however, the Su-
Tax Court petition was a nonjurisdictional deadline subject preme Court handed down its decision
in Boechler, 142 S. Ct. 1493 (2022). In
to equitable tolling, the Tax Court held,
in a deficiency case based on the text, context, and relevant that case, the Court held that “Section
is jurisdictional; historical treatment of Sec. 6213(a), 6330(d)(1)’s 30-day time limit to file a
petition for review of a collection due
that the 90-day deadline to file a Tax
notice identifying Court petition in a deficiency case is process determination is an ordinary,
syndicated jurisdictional and not subject to equi- nonjurisdictional deadline subject to
conservation table tolling. equitable tolling.”
In response to the Boechler decision,
easement Background Hallmark quickly filed a motion to va-
transactions as Hallmark Research Collective is a cate the Tax Court’s decision, in which it
California corporation. The company
argued that the Supreme Court’s reason-
listed transactions is filed its 2015 return late and did not ing in Boechler compelled the conclusion
held invalid. file a 2016 return. The IRS prepared a that the Sec. 6213(a) deadline for defi-
substitute for return for 2016 for Hall- ciency cases is also not jurisdictional and
mark. On June 3, 2021, the IRS sent the is therefore subject to equitable tolling.
company a statutory notice of deficiency
for 2015 and 2016. The Tax Court’s decision
The notice of deficiency stated in The Tax Court denied Hallmark’s mo-
its front-page caption that the last tion to vacate, holding that the timely
day to file a petition challenging the filing of a petition in a deficiency case
IRS’s determinations in the notice of is a jurisdictional requirement. After PHOTO BY ARCHEOPHOTO/ISTOCK
deficiency was Sept. 1, 2021. Despite reviewing the Supreme Court’s opinion
the IRS’s clear statement of the filing in Boechler, the court found that the
deadline, Hallmark did not file a peti- reasoning in that case that applied to
tion challenging the deficiencies asserted the 30-day deadline in Sec. 6330(d)(1)
54 February 2023 The Tax Adviser
