Ask The California Employment Tax And Payroll Tax Attorney – The Unknown 14-day Extension Rule For Filings In The Tax Court
By Robert S. Schriebman
The US Tax Court is a court of limited jurisdiction. Filing documents in the Tax Court, especially a petition, must be filed on time or the taxpayer is out of luck. That is the general rule. A taxpayer seeking to invoke the Court’s jurisdiction in a deficiency case generally must file a petition challenging an IRS proposed assessment within 90 days of the Commissioner’s mailing of the notice. What most do not know is that a small piece of legislation was added in 2021 giving a taxpayer an additional 14-day extension if the Court is inaccessible or otherwise unavailable to the general public the date the petition is due. IRC § 7451(b). This little-known rule allowed Mr. Sall to file a timely petition several days after the expiration of the due date stated on The Notice of Deficiency.
This article will discuss the Sall case and this little-known new rule.
The Sall Case
Madiodio Sall V. Commissioner 161 TC – No. 13, November 30, 2023
The IRS issued Sall a Notice of Deficiency dated August 25, 2022. Although the Notice was dated on the 25th, the IRS sent it by certified mail on August 26, 2022. The 90th day after August 26, 2022 was Thursday, November 24, 2022, Thanksgiving Day. The Notice stated that the last day to file a petition with the Tax Court was Friday November 25, 2022, the day after Thanksgiving. On that Friday, the Court was also closed. The Court’s electronic filing system was operational and accessible, but its ability was immaterial to the Court’s decision in the Sall case.
IRC § 7451(b)
IRC § 7451(b) was added to the Code in 2021. This provision extends the deadline for filing a petition if “a filing location is inaccessible or otherwise unavailable to the general public on the date the petition is due.” The term “filing location” includes the office of the clerk of the Tax Court in Washington, DC. The filing period is tolled by “the number of days within the period of inaccessibility plus an additional 14 days.”
Because a filing location was inaccessible, Sall’s petition was timely. The Court was inaccessible on Friday November 25. The availability of the Court’s electronic filing system was immaterial. The period of inaccessibility was one day. Adding that one day to the additional 14-day tolling period required by the new law resulted in extending Sall’s petition deadline by 15 days from the original due date of his petition. Therefore, the last day to file the petition was December 10, 2022, but that date fell on a Saturday. The Court received Sall’s petition on December 1, 2022 before the extended filing deadline. Thus, his petition was timely.
Robert Schriebman has a successful practice in the Rolling Hills Estates area of Los Angeles County serving clients throughout California and the United States. He has successfully dedicated more than 50 years to helping individual taxpayers, business owners, CPAs, Enrolled Agents, and tax attorneys navigate the complicated tax systems of the federal and state governments. Mr. Schriebman is in private practice. He is not affiliated in any way with the EDD, and he is not employed by the EDD or any other agency of the State of California.
Robert Schriebman has written the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.
Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House.
Robert Schriebman has written over 20 books including the major manual used nationally by practitioners and the IRS, “IRS Tax Collection Procedures – A Manual for Practitioners” published by Commerce Clearing House in addition to the only 2 books ever published dealing with how California Employment Development Department (EDD) operates. See “California Tax Collection Practice and Procedures” and “California Taxation Practice and Procedure,” both published by Commerce Clearing House.
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