T.C. M em o . 2 0 2 1 -5 8

UNITED STATES TAX COURT

W ILLIAM J . SPAIN AND IDOVIA A. SPAIN, Pet i t i o n ers v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 1 8 8 87 -1 9 L. Fi l edM ay 1 1 , 2 0 2 1
.
W i l l i am J . Sp ai n an dId ov i a A. Sp ai n , p ro s es e. Al i ci a E. El l io t tan dRach ael J . Zep ed a, fo r res p o nd en t .

M EM ORANDUM OPINION LAUBER, J u d g e: Cu rren t l y b efo re the Co u rti s a m o ti o n b y th e In t ern al Rev enu e Serv i ce (IRS o r res p o n d en t ) t o d i s m i s s th i s cas e fo r l acko f juri s d i ct i o n o n th e g ro u n dth atth e p et i t i o n was n o tfi l edwi th i n t h e t i m e p res cri b edb y s ect i o n

Served 05/11/21- 2
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[* 2 ] 6 3 3 0 (d )(1 ). 1 Pet i t i o ners co n t en dth atthe p et i t i o n was t im el y m ai l edan ds o s h o u ldb e d eem edt i m el y fi l edu n d er s ect i o n 7 5 0 2 . Fi nd i n g th atp et i t i o n ers h av e
n o tcarri edth ei r b u rd en o f p ro v i n g th atth e p et i t i o n was t i m el y m ai l ed , we wi l l g ran tres p o n d en t ’ s m ot i o n . Back gro u n d Th e fo l l o w i n g fact s are d eri vedfro m th e p art i es ’ p l ead i n g s , m o t i o n p ap ers , an d th e ex h i b i t s an dd ecl arat io n s at t ach edth eret o . Pet i t i o n ers res id edi n Ari zo n a wh en th ey p et it i o n edth i s Co urt . Th e IRS i s s u edp et i t i o n ers a n o t ice o f d efi ci en cy fo r 2 0 1 4 an das ses s edth e t ax aft er th e t i m e t o p et i t i o n th i s Co u rt h adex p i red . Wh enthey fai l edt o p ay

th e t ax , th e IRS s en tth em

a n o t i ce o f i n t en tt o l ev y . Th ey t i m el y s o u g h ta co l l ect i o n du e p ro ces s (CDP) h eari n g , s eek i ng t o ch al l en g e t h ei r u n d erl y i n g t ax l iab i l i ty fo r 2 0 1 4
. Du ri n g th e h eari n g th e s et t l em en t o ffi cer (SO) ex p l ai n edth atp et i t i o n ers were n o t en t i t l ed to ch al l en g e th ei r u n d erl y i n g l i ab i l i ty b ecau s e t h ey

h adrecei v ed
a n o t i ce o f d efi ci en cy . See s ec. 6 3 3 0 (c)(2 )(B). Pet it i o n ers d i dn o tp ro po s e a co l l ect i o n al t ern at i v e, an dth e SO cl o s edth e cas e. Th e SO n o t edthatp et i t i o n ers

1 Al l s t atut o ry

referen ces are t o th e In t ern al Rev en u e Co de i n effect atal l rel ev an t t i m es , an d al l Ru l e referen ces are t o the Tax Co urtRu l es o f Pract ice an d Pro cedure.- 3
-

[* 3 ] h ad a p en d in g req u es tfo r au d i treco n s i derat io n , wh ich i s co n du ct ed
s ep arat el y

fro m CDP p ro ceed i n g s . See Du rd a v . Co m m i s si on er, T.C. M em o . 2 0 1 7 -8 9 , 1 1 3 T.C.M . (CCH) 1 4 2 0 , 1 4 2 2 n .3
. Th e IRS i s s u edp et i t i o n ers s ep arat e n o ti ces o f d et erm i n at io n d at edSep t em b er 1 0 , 2 01 9 , s u s t ai n i n g th e co l l ect i o n act i o n . Track i ng d at a fro m th e U.S. Po s t al Serv i ce (USPS) s h o w th atthes e n ot i ces were m ai l edth e fo l lo wi n g d ay an d d el i v eredt o p et it i o n ers o n Sep t em b er 1 6 , 2 0 1 9 . Th e n o t ices ad vi s ed p et i t io n ers : “ If y o uwan tt o d i s p u t e t h is d et erm i n at i o n i n co u rt , y o u m u s tfi l e a p et i t i o n wi th th e Un i ted St at es Tax Co u rtwi th i n 3 0 d ay s fro m th e d at e o f t h i s l et t er.” See s ec. 6 3 3 0 (d )(1 ). Becau s e t h e n o t i ces were m ai l edo n Sep t em b er 1 1 , 2 01 9 , th e 3 0 -d ay p eri o dex p i red o n Fri d ay , Oct o b er 1 1 , 2 0 1 9
. Cf. Bo n g am v . Co m m i ss i o ner, 1 4 6 T.C. 5 2 , 5 8 (2 01 6 ). Th e Co u rtrecei v eda p et i t i o n fro m p et it i on ers o n Oct ob er 2 1 , 2 0 1 9 . Th at d at e was 4 0 d ay s aft er t h e IRS i s s u edth e n o t ices o f d et erm i n at i o n . Pet it i o n ers d i s p u t edth ei r u n d erl y in g l i ab i l i ty fo r 2 0 14 an das k ed th e Co u rtt o “p l ac[e] a h o l d
o n co l lect i o n s u nt i l th e * * * [IRS] h as h adth e o p p o rtu n i ty t o co m p l et e th e au d i t
reco n s i d erat i on p ro ces s an dp ro ces s t h e rel at edam en d edi n co m e t ax retu rn .” Th e p et i t i o n , wh i ch l ack edo ri g i nal s i g natu res , was d at edOct o b er 1 0 , 2 0 1 9
. Th e en v el o p e i n wh i ch th e p et it i o n was m ai l edwas p ro p erl y ad dres s edt o th e Tax- 4
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[* 4 ] Co u rt . Th e en v el op e b ears U.S. p o s t ag e o f $ 1
. 7 5, ev i d en t l y affi x edb y

a Pi tn ey Bo wes p o s tag e m et er, an di tap pears t o h av e b een d el i v eredt o t h e Co u rtb y USPS. Ho w ev er, t h e en v el o p e b ears n o p o s tm arkan d h as n o o th er m ark i n g affi x edb y

USPS. OnDecem

b er 1 2, 2 01 9 , res p o n d en ts en t p et i ti o n ers a l et ter ex p lai n i n g th at th e p et i t i o n h adn otb een fi l ed wi th i n th e 3 0 -d ay p eri o dp res cri b edb y s ect i o n 6 3 3 0 (d )(1 ). Res p o n d en tad v i s edp et i t i o n ers th ath e wo u l dm ov e t o d i sm i s s th e cas e u n l es s th ey

s up p l i ed“ recei p t s o r o th er d ocu m en t s s h o wi n g wh en th e Pet i t i o n was m ai l ed .” OnDecem b er 1 8, 2 0 1 9 , p et i t i o n ers ’ acco u n tan t , Ri ch ardSh ap i ro , rep l i edwi th a l et t er i n wh i ch h e s t at edth atth e p et i t io n h adb een s i g n edb y p et i
t i on ers o n Oct o b er 1 0 , 2 0 1 9, an dm ai l ed th ats am e d ay fro m h i s o ffi ce i n Sco t t s d al e, Ari zo n a. Ho wev er, M r. Sh ap i ro s up pl i edn o “ recei p t s o r o th er d o cu m en t s ”
as res po n d en th adreq u es t ed
. OnJ an u ary

1 5 , 2 0 2 1 , res p o n d en tfi l eda m o ti o n t o d i sm i s s fo r l acko f ju ri s d i ct i o n , t o wh i ch we o rd eredp et i t i o n ers t o res p o ndb y Feb ru ary 2 2, 2 0 21 . On Feb ru ary 2 6 , 2 0 2 1 , we recei v eda l et t er fro m M r. Sh ap iro
. 2 Th i s l et t er i n cl u d es n o

2 M r. Sh ap i ro h as n o ten t ered an ap p earan ce o n b eh al f o f p et i t i o ners , an d p et i t i o n ers d i d n o ts i g n h i s l et t er. See Ru l e 2 3 (a)(3 ) (p ro vi d i ng th atp ap er fi l i n g s “ s h al l b ear t h e o ri g in al s i g natu re o f t h e p art y ’ s co un s el , o r o f t h e p art y p ers o n al l y i f t h e p art y

i s s el f-rep res en t ed ”).- 5
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[* 5 ] ev i d en ce s h o wi n g thatthe p et i t i o n was t i m el y m ai led . Rat h er, M r. Sh ap i ro at t ach eda co p y

o f h i s Decem

b er 1 8 , 2 0 1 9 , l et t er t o res p o n d en t ’ s co u n s el an drequ es tedth atp et it i o n ers “b e p ro v i d edthei r o pp o rtun i ty t o rev i ew t h ei r cas e t h ro u g h [t he] ap p eal s p ro ces s .” Di s cu ss i o n Th i s Co u rti s a co u rto f l i m i t ed juri s d i ct i o n , an dwe m ay ex erci s e juri s d i ct i o n o n l y

t o the ex ten tex p res s l y

au tho ri zedb y Co n gres s . Naft el v . Co m m i s s i o n er, 8 5 T.C. 5 27 , 5 2 9 (1 9 8 5 ); Brem an v . Co m m i s s i o n er, 6 6 T.C. 6 1 , 6 6 (1 9 7 6). “ J u ri s d i ct i on m

u s tb e s h o wnaffi rm at iv el y , an d p et i t i o n er[s ] , as th e p art [i es ] i n v ok i n g o u r ju ri s di ct i o n * * * , b ear[] th e b u rd en o f p ro v i ng th at we h av e juri s d i ct i o n .” Dav i dDu n g Le, M .D., In c. v . Co m m i s s i o n er, 1 1 4 T.C. 2 6 8 , 2 7 0 (2 0 0 0), aff’ d , 2 2 Fed . Ap p x. 8 3 7 (9 th Ci r. 2 0 0 1). To m eetth i s b u rd en ,

“p et i t i o n er[s ] m

u stes t ab l i s h affi rm at i v el y al l fact s g i vi n g ri s e t o o u r ju ri s d i ct i o n .” Ib i d
. Sect io n 6 3 3 0 (d )(1 ) p ro v i d es th ata t ax p ay er “ m ay , wi th i n 3 0 d ay s o f a d et erm i n at i o n u n d er t h i s s ect io n , p et i t i o n th e Tax Co u rtfo r rev i ew o f s u ch d et erm i n at i on (an dthe Tax Co u rts h al l h av e ju ri s d i ct i on wi th res p ectt o s uch m at t er).” Th e 3 0 -d ay p eri o dco m

m en ces o n th e d ay

aft er th e d at e o n wh i ch th e n o t i ce o f d et erm i n at i o n was i ss u ed
. Sec. 3 0 1 .6 3 3 0 -1 (f)(2 ), Q&A-F1 , Pro ced . & Ad m i n. Reg s . If- 6
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[* 6 ] th e t ax p ay er d oes n o tfi le h i s p et i t i o n wi th i n th i s 3 0 -d ay p eri o d , th e Co u rt l ack s juri s d i ct io n t o rev i ew t he IRS co l l ect i o n act i on . See Gu ral n i kv . Co m m i s s i o n er, 1 4 6 T.C. 2 3 0 , 2 3 5 -2 3 8 (2 0 1 6); Oru m v . Co m m i s s i on er, 1 2 3 T.C. 1 (2 0 0 4), aff’ d , 4 1 2 F.3 d8 1 9 (7 th Ci r. 2 0 0 5); Sarrel l v . Co m m i s si on er, 1 1 7 T.C. 1 2 2 , 1 2 5 (2 0 0 1). Fo r p et i t i o n ers th i s 3 0 -d ay p eri o d ex pi redo n Fri d ay , Oct o b er 1 1 , 2 0 1 9
. Sect io n 7 5 0 2 (a) p ro v i d es a “ ti m el y m ai led , t im el y

fi led ” ru l e. A d o cu m en t d el i v eredb y

U.S. m ai l i s t i m el y

m ai l edi f “ th e p o s t m arkd at e fal l s * * * o n o r b efo re t he p res cri b edd at e” an dthe d ocu m en ti s m ai l ed , o n o r b efo re t h atd at e, i n an en v el o p e wi th “p o s t ag e p rep ai d , p ro p erl y ad dres s ed ” t o th e reci p i en t . Id
. p ara. (2 ). If t h o s e co nd i t i o n s are m et , “ th e d at e o f t he Un i t ed St at es p o s t m arks t am p edo n th e co v er i n wh i ch s u ch * * * d o cu m en t* * * i s m ai l eds h al l b e d eem edt o b e t h e d at e o f d el i very .” Id . p ara. (1 ). Th e p art i es ag ree t h atth e en vel o p e i n wh i ch th e p et i
t i on was m ai l edwas p ro p erl y ad dres s edt o the Tax Co u rtan d t h atth e en v el o p e b ears n o U.S. p o s t m ark . Th ey d i sag ree as t o wh et h er t h e en v el op e was d ep o s i t ed i n the U.S. m ai l o n o r b efo re Oct o b er 1 1 , 2 0 1 9. Th e reg u l at i o n s p res cri b e d i s t i n ctru l es fo r USPS an dn o n -USPS p o s t m ark s , s ec. 3 0 1.7 5 0 2 -1 (c)(1 )(i i i ), Pro ced . & Ad m i n . Reg s ., b u tth ey s up p ly n o ru les t o g o v ern th e s i tu at i o n wh ere t h e en v el o p e h as n o p o s t m arkwh at s o ev er. Wh en a- 7
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[* 7 ] p o s t m arki s m i s s i n g , o u r cas e l aw i n st ru ct s u s t o d eem th e p o s tm arki l l eg i b l e
an d p erm i tth e i nt ro du ct i on o f ex tri ns i c ev i d en ce t o as cert ai n th e m ai l i ng d at e. See Sy lv an v . Co m

m i s s io ner, 6 5 T.C. 5 4 8 , 5 5 3 -5 5 5 (1 9 7 5 ); s ee al s o M as o n v . Co m m i s s i o n er, 6 8 T.C. 3 54 , 3 5 6 (1 9 7 7 ). Th e b u rd eni s o n th e p art y wh o i nv o k es s ect i on 7 5 0 2 t o p res en t“ co n v i n ci n g ev i d en ce” o f t i m el y m ai l in g . M as o n , 6 8 T.C. at3 5 6 -3 5 7 ; s ee s ec. 3 01
. 7 5 0 2-1 (c)(1 )(i i i )(A), Pro ced . & Ad m i n . Reg s . (p ro v i d in g th at , i f a USPS p o s tm ark“ is n otl eg i b l e, t h e p ers o n * * * [i n vo k i n g s ect i on 7 5 0 2 ] h as th e b u rd en o f p ro v in g the d at e t h atth e p o s t m arkwas m ad e”). Wh en co n fro nt edwi th i l l eg i b l e o r m is s i n g p o s t m ark s , we h av e co n s i d ered
v ari o u s ty p es o f ex tri n s i c ev i den ce. W e h av e ex am i n edth e en v el o p e t o s ee wh et h
er an y m ark i n g s i n d i cat e t h atth e l et ter h adb een “ m i s p l aced , m i s s en t , o r i n ad v ert en t l y l o s to r d am ag ed .” See Ro b i n s o n v . Co m m i s s i on er, T.C. M em o . 2 00 0 -1 4 6 , 7 9 T.C.M . (CCH) 1 9 5 6 , 1 9 5 7. W e h av e al s o co n s i d eredt es t i m o n y fro m th e p ers o n cl ai m i n g t o h av e m ai l edth e en v el o p e. See M as o n , 6 8 T.C. at 3 5 7. Th i s t es t i m o ny m u s tb e cred i bl e an dco nv i n ci n g . Ib i d . W e are n o treq u i redt o accep t
u n co rro bo rat ed , s el f-s erv in g s t at em en t s “ as g o sp el .” To k ars k i v . Co m m i s s i o n er, 8 7 T.C. 7 4 , 7 7 (1 9 8 6 ); s ee Kau ffm an v . Co m m i ss i o n er, T.C. M em o . 1 9 9 3 -4 9 4 , 6 6 T.C.M . (CCH) 1 1 3 1 , 1 1 32 (“ [S] el f-s erv i n g s t at em en t s d o n o ts up p o rta fi n d i n g th ata p et i t i o n was p ro p erl y an dt i m el y

m ai ledt o th e Tax Co urt .”); Lu m b er Pro d s.,- 8
-

[* 8 ] In c. v . Co m

m is s io n er, T.C. M em o . 1 9 9 2 -7 2 8 , 6 4 T.C.M
. (CCH) 1 6 0 8, 1 6 0 9
- 1 6 1 0
. Th e en v el o p e th atco n t ai n edth e p et i t io n i n th i s cas e b ears n o p o s t m arko r o th er m ark i n g affi x edb y

USPS. Th e en v el o pe i s n o td am ag ed , an d th ere i s n o i n d i cat i o n t h at i twas m is d el i vered , m i s d irect ed , o r m i s p l aced . Our juri s di ct i o n acco rd i n g l y

tu rn s o n wh et h er p et i t i o n ers h av e p res en t ed cred i b le ev id en ce t h at th ei r acco u n tan tt i m el y

m ai l ed th e p et i t i o n . W e fi n dth at th ey h av e n o t. In res p o n s e t o t h e m o t i o n t o d i s m i ss M r. Sh ap i ro u rg ed th atp et it i on ers “b e p ro v id edth ei r o p p o rtu n it y t o rev i ew t h ei r cas e t h ro ug h [t h e] ap p eal s p ro ces s .” He
s up p li edn o ev i d en ce o f t i m el y m ai l i n g b u ts i m

p l y at t ach ed th e l et t er h e h adp rev i o u s l y s en t res p on den t . Th atl et t er l i k ewi s e s up p l i edn o ev i d en ce o f t i m el y m ai li n g b u t i n s t eads i m

p l y as s ert edth atth e p et i t i o n was s i g n edb y p et i t i o ners o n Oct o b er 1 0 , 2 0 1 9 , an dm ai l edfro m h i s o ffi ce l at er th atd ay . W e are n o tco n v i n cedb y th es e u ns wo rn , u nco rro b o rat eds t at em en t s . Sel fs erv i ng s t at em en t s o f th is s o rtare n o t s u ffi ci en tt o carryp et i t i o n ers ’ b u rd en . See To k ars ki , 8 7 T.C. at7 7. Becau s e p et it i o n ers h av e n o tp ro v i ded“ co n v i nci n g ev i
d en ce” t h atth e p et i t i o n was t i m el y m ai l ed , s ee M as o n, 6 8 T.C. at3 5 7 , th ey h av e fai l edt o s at i s fy

th e req u i rem en t s o f s ect io n 7 50 2
.- 9
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[* 9 ] Th e reg u l at i o n s warn t ax p ay ers an dth ei r adv i s ers th at“ th e s en d er wh o rel i es up o n th e ap pl i cab il i ty o f s ect i o n 7 5 0 2 as s um es th e ri s k t h atth e p os t m ark wi l l b ear a d at e o n o r b efo re t h e l as td at e * * * p res cri b edfo r fi li ng .” Sec. 3 0 1 .7 5 0 2 -1 (c)(1 )(i i i )(A), Pro ced . & Ad m i n . Reg s. To av o i dth is ri s k, the reg u l at i o n s ad vi s e th e u s e o f cert i fi edm ai l . Ib i d . Had M r. Sh ap i ro u s edcert i fi ed
m ai l , h e wo u l d h av e a recei p tp o s t m ark ed b y the em p l o y ee t o wh o m

h e p res en t ed th e en v el o p e, an d th at p o s t m arkwo u l db e t reat edas th e p o s t m arkd at e o f t h e d o cu m en t . Id . s ub p ara. (2 ). In th i s cas e p et it i o n ers h av e n o p ers u as iv e ev i d en ce o f t i m el y m ai l i n g , an d th ey h av e t h erefo re fai l edt o m eetth ei r b u rd en t o “ es t ab l i s h affi rm at i v el y

al l fact s g i v i n g ri se t o o u r juri s d i ct i on .” See Dav i dDu n g Le, M .D., In c., 1 1 4 T.C. at2 7 0 . Becau s e t h e p et i t i o n was n o t fi l ed(o r d eem edfi led ) wi th i n th e s t atu t o ri l y

p res cri b edp eri o d, we m

u s td i s m is s thi s cas e. To refl ectthe fo reg o i n g , Ano rd er wi l l b e en t eredg ran t i n g res p o nd en t ’ s m o t i o n an dd i s m is s i n g th i s cas e fo r l acko f juri s d i ct i on .