Tax Courtroom Dismisses Case Filed Late After Time Zone Snafu

Some folks thrive on butting proper up in opposition to deadlines. I’m not a kind of folks.

I do not like taking probabilities—particularly in the case of tax deadlines. There’s all the time an opportunity {that a} rush of Swifties to get live performance tickets might take out the web whereas I am trying to e-file a return. Or {that a} felon fleeing the scene of a financial institution theft might take out the ability strains simply because the printer is spitting out the final tax kind for signature. Or an errant zebra being chased by the police might cease site visitors whereas I am on my strategy to pop a petition within the put up.

(Admittedly, I’ve fairly the creativeness in the case of potential issues.)

I prefer to plan—and that features planning for when issues go incorrect. As a result of in the case of tax deadlines, one mistake can upend every little thing. Roy A. Nutt and Bonnie W. Nutt discovered that out the arduous manner.

Submitting The Petition

The details will not be in dispute. The events agree that the IRS mailed a discover of deficiency to the Nutts. The discover spelled out that the deadline to file a petition contesting the deficiency was July 18, 2022.

The Nutts electronically filed their petition at 11:05 p.m. on July 18, 2022—in Alabama.

The issue? The U.S. Tax Courtroom is situated in Washington, D.C., the place the time was 12:05 a.m. on July 19, 2022.

In consequence, the IRS filed a Movement to Dismiss for Lack of Jurisdiction as a result of the petition was late.

Evaluation

The Tax Courtroom famous that their “jurisdiction in deficiency instances is based on a sound discover of deficiency and a well timed petition.”

Below part 6213(a), a petition have to be filed inside 90 days after the discover of deficiency is mailed (150 days if the discover is addressed to an individual exterior america). If the discover of deficiency specifies a final day for submitting a petition that’s later than the ninetieth day, then the deadline is prolonged to that specified date. And, as with many different tax submitting deadlines, if the final day falls on a Saturday, Sunday, or authorized vacation within the District of Columbia, the deadline is prolonged to the following day that isn’t a Saturday, Sunday, or authorized vacation.

Right here, though the discover of deficiency was mailed on April 14, 2022, the discover acknowledged that the final date to file a petition was July 18, 2022.

A petition is ordinarily “filed” when it’s acquired by the Tax Courtroom in Washington, D.C. Until the well timed mailing rule applies beneath part 7502, a doc will not be thought of to be filed till it’s acquired.

The well timed mailing rule doesn’t apply to an electronically filed petition. The place part 7502 doesn’t apply, the Courtroom “should look to the date the ‘petition’ was really acquired and filed by the Courtroom to find out whether or not it was well timed filed.”

Whereas taxpayers won’t suppose to test the statutes—one thing that almost all tax professionals do routinely—the foundations are posted on the Tax Courtroom web site. The principles say, amongst different issues, that in the case of digital submitting, “A paper can be thought of well timed filed whether it is electronically filed at or earlier than 11:59 p.m., japanese time, on the final day of the relevant interval for submitting.”

As well as, the Courtroom’s web site additionally walks you thru find out how to file a petition electronically. The web page notes: “You might have acquired a discover within the mail from the Inner Income Service (IRS). The Courtroom should obtain your electronically filed Petition no later than 11:59 p.m. Jap Time on the final date to file. Petitions acquired after this date could also be dismissed for lack of jurisdiction.”

Outcome

Sadly, the Nutts’ petition was not filed well timed as a result of it was filed in Washington, D.C., after the final day for submitting. The Courtroom does not have the authority to increase the deadline. In consequence, the case was dismissed.

Takeaway

In case your coronary heart sank somewhat bit whereas studying this case, I am proper there with you. It is all the time irritating when taxpayers haven’t got the chance to advocate their place due to a missed element. However a lot of tax regulation hinges on dates, deadlines, and particulars. They matter.

And whereas it is probably not possible that an errant zebra causes you to overlook a deadline, planning to file upfront is wise. As famous earlier, you usually have 90 days to file in Tax Courtroom after you obtain a discover of deficiency. Do not maintain onto the discover—take steps instantly to resolve your concern. If you are going to signify your self, familiarize your self with the foundations and provide you with a plan of assault. And should you select to rent a tax skilled, remember to attain out in loads of time so there’s time to craft a top quality response—and file it on time.

The case is Roy A. Nutt and Bonnie W. Nutt v. Commissioner.