Procedural Issues
Memorandum Opinions / Procedural Issues / Tax Opinions

Spain v. Commissioner
T.C. Memo. 2021-58

On May 11, 2021, the Tax Court issued a Memorandum Opinion in the case of Spain v. Commissioner (T.C. Memo. 2021-58). The primary issue presented in Spain v. Commissioner was whether the petitioners proved that their petition had been timely mailed such that the Tax Court had jurisdiction to entertain their case. The Timing Issue in Spain v. Commissioner The IRS issued petitioners separate notices of determination dated September 10, 2019, sustaining the underlying collection action. Tracking data from the U.S. Postal Service (USPS) show that these notices were mailed the following day and delivered 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 IRC § 6330(d)(1). Because the notices were mailed on September 11, 2019, the 30-day period expired…

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May 11, 2021
Penalties Under the Code
Memorandum Opinions / Penalties Under the Code / Tax Opinions

Battat v. Commissioner
T.C. Memo. 2021-57

On May 11, 2021, the Tax Court issued a Memorandum Opinion in the case of Battat v. Commissioner (T.C. Memo. 2021-57). The primary issue presented in Battat v. Commissioner was whether the IRS received prior supervisory approval of an initial determination of a penalty under IRC § 6751(b)(1). Same Issue, New Wrinkle in Battat v. Commissioner The IRC § 6751(b)(1) prior supervisory approval rule has been litigated with substantial regularity over the last year and a half.  Some smart guy (your fearless editor) even wrote a great article on it in Tax Notes Today, if you care to check it out.  The discrete question in Battat was whether the Form 4549 (Income Tax Examination Changes), more commonly known as a revenue agent report (RAR), that the petitioner received with a Letter 4121 (Agreed Examination Report Transmittal), was an “initial determination” by an “individual” to impose a penalty for purposes of…

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May 11, 2021