T.C. Mem o. 2 01 6- 40

UNITED STAT ES TAX COURT

KIMBER LY J. GAFFORD, Pet it io ne r v. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 19 20 7- 13 L. Fi le d M arch 7, 2 01 6.

Held : We will di sm is s t hi s ca se forlac k o f juri sd ic ti on be cau se we ha ve no au th or it y

to rev ie w R's d eci si on let te r se ntto P fo ll owi ng anequi va le nthe ari ng an d d eci di ng to pro ceedby lev y to co ll ectth e pe na lt y th atR im po se d o n P forfil in g afri vo lo us return.
Kim be rly J. Gaffo rd , pro se. Ch ris to ph er S. Kip pe s, Ad am L. Fli ck , Audrey M. Mo rri s, an d Ab be y B. Garb er, fo r res po nd en t.- 2 -

[* 2] MEMORANDUM FINDINGS OF FACT AND OPINION HALPERN, Ju dg e: Pet it io ne r ha s b ro ug htth is cas e as ki ng th atwe rev ie w a de ci si on by the Int ern al Rev enue Serv ic e Offi ce o f App eal s (Ap pe al s) th at res po nd en t m ay

pro ceedby lev y

to co ll ectanunpa idciv il pe na lty an d i nt eres t tha t he ass es se d o n a cco un t o f pe ti ti on er's fil in g afri vo lo us tax return fo r 20 07 . Res po nd en t as ks th atwe di sm is s t hi s ca se forlac k o f juri sd ic ti on be cau se App eal s m ad e n o d et erm in at io n t ha t m ay be ap pe al edto th is Co urt. Unl es s o th erwi se st at ed , all sec ti on refe ren ces are t o t he Int ern al Rev enue Co de of 1 98 6, as am en de d. FINDINGS OF FACT Whe n s he fil edth e p et it io n, p et it io ne r res id edinTexa s. Pet it io ne r is a syste m s ad m in is tra to r who , in20 07 , work edforLockhe ed Marti n C or

p. Fo r 20 07 , Lockhe edMart inpa idhe r wag es of $ 77 ,80 9 a ndrep orte d th atpa ym en t t o h er o n aFo rm W -2 , W ag e an d Tax Sta te m en t. Pet it io ne r or ig in al ly file d a20 07 Fed eral in co m e ta x re tu rnrep orti ng ad jus te d g ro ss in co m e of $7 8,9 62 an d i nc om e ta x o f $1 0,5 44 . In 2 01 1, p et it io ne r subm it te d t o res po nd en t a F orm

48 52 , Sub st itut e fo r Fo rm W -2 , W ag e an d Tax Sta te m en t, o r Fo rm 10 99 -R, Dis tri bu ti on s Fr om Pen si on s, An nu it ie s, Re ti rem en t o r Pro fit
-- 3 -

[* 3] Sh ari ng Pla ns , IRAs, In su ran ce Co nt ract s, et c., on whi chsh e rep orte d h er 20 07 wage s fr om

Lockhe edMart in to be zero . Peti ti on er al so subm it te d a20 07 Fo rm 10 40 X, Am en de d U.S. In di vi du al Inc om e Tax Return, o n wh ic h s he ch an ge d h er wag e am ou ntto zero to refl ectth e Fo rm 48 52 sh e h adfil edan d o n whi chsh e cl ai m eda refu nd . Peti ti on er t es ti fie d a t tria l tha t s he m ad e th os e subm is si on s b ecau se sh e h adco m e to co nc lu de th athe r earni ng s d idno t qua li fy as wag es subjec t t o i nc om e ta x b ecau se ne ithe r ha d s he rece iv edth os e earni ng s fr om a Gov ern m en t ag en cy

forth e p erfo rm an ce o f a p ub li c o ffi ce n ordi d t he earn in gs ot he rwis e co ns ti tu te ga in s, p ro fit s, o r in co m e wit hi n t he m ean in g o f rel ev an t l aw. InFeb ru ary 20 12 , res po nd en t wro te to pe ti ti on er, n ot ifyin g h er tha t the Fo rm 10 40 X was fr iv ol ou s an d tha t h e wou ldass es s a $ 5,0 00 pe na lt y if s he di d no t co rrec t the Fo rm

10 40 X withi n 3 0 d ay s. Pet it io ne r di d n otres po ndto th at le tt er, an d, i n Ap ril 20 12 , res po nd en t as se ss edth e p en al ty and , pre su m ab ly, no ti fie d h er o f he r li ab il it y forth e p en al ty andde m an de d i ts pa ym en t. Pet it io ne r di d n otpa y

th e p en al ty, an d, o n J ul y 2, 2 01 2, re sp on de ntsen t h er a n ot ic e o f in te nt to lev y (le vy no ti ce). Th e le vy no ti ce s ta te d: "Thi s i s your no ti ce o f in te ntto lev y as requi redby Inte rn al Rev enue Co de sec ti on 63 31 (d )." Itin fo rm edpe ti ti on er th at , if s he di d n otimm ed ia te ly pay th e am ou ntdu e o r cal l the Int ern al Rev enue Serv ic e (IR S), res po nd en t wo ul d s ei ze an y Sta te tax refu ndsh e was du e. The- 4 -

[* 4] no ti ce co nt in ue d: "If you s ti ll ha ve anou ts tand in g b al an ce af te r we se iz e ('l ev y ') y ou r st at e ta x re fund , we m ay sen d youa no ti ce g iv in g youa ri gh t t o a he ari ng be fo re the IRS Offi ce o f App eal s, i f y ouha ve no t re cei ve d s uc h ano ti ce. W e m ay th ensei ze ('l ev y ') o r ta ke po ss es si on of you r ot he r pr op erty or you r ri gh ts to pro pe rty." On Jul y

24 , 20 12 , inres po ns e to th e le vy no ti ce, p et it io ne r se ntto res po nd en t a l et te r (J ul y

24 let te r) reque st in g aco ll ect io n due pro ces s (s ect io n 63 30 ) he ari ng an d c ha ll en gi ng he r li ab il it y forth e p en al ty. Pet it io ne r ad dr es se d th e Ju ly 24 l ette r to th e IRS off ic e is su in g t he lev y

no ti ce, i n M em

ph is , Tenn es se e. The IRS re cei ve d t he Ju ly 24 l ette r on Ju ly 30, 2 01 2. OnAug us t 2 3, 2 01 2, res po nd en t ac kn owl ed ge d t he Ju ly 24 l et te r, st at in g tha t i t h adbe enrece iv edon Aug us t 9 , 20 12 . Res po nd en t p ro m is edto co nt actpe ti ti on er wi th in45 day s. On Au gu st4, 2 01 2, re sp on de ntsen t t o p et it io ne r a Fi na l No ti ce o f In te ntto Lev y an d No ti ce o f You r Ri gh t t o aHeari ng (fi na l n ot ic e). The fin al no ti ce in di cat es th atitwas s en t fr om th e IRS ACS Supp ort o ffi ce, Fre sn o, Ca li fo rn ia . It st at es th atitis th e n ot ic e requi redby sect io ns 63 30 an d 6 33 1. Itst at es res po nd en t's in te ntto lev y to co ll ectth e as se ss edpe na lt y un le ss , am on g o th er op ti on s, p et it io ne r do es th e fo ll owi ng : "Ap pe al th e in te nd edlev y on y ou r pr op erty by requ es ti ng a Co ll ect io n Du e Pro ces s h eari ng withi n 3 0 d ay s fr om th e d at e o f th is let te r."- 5 -

[* 5] By let te r da te d Dec em

be r 4, 2 01 2, p et it io ne r's rep res en ta ti ve wrot e to th e IRS ACS Supp ort o ffi ce, en cl os in g wi th hi s l et te r a Fo rm 12 15 3, Re qu es t fo r a Co ll ect io n Du e Pro ces s o r Equ iv al en t Hea rin g (h eari ng reque st ), reque st in g a n equi va le nthe ari ng . Purs ua ntto th e h eari ng reque st , an Ap pe al s s et tl em en t o ffi cer acco rd edpe ti ti on er's rep res en ta ti ve a te le ph on e h eari ng . On Ju ly 19, 2 01 3, App eal s s en t t o p et it io ne r a Deci si on Lett er Co nc ern in g Equi va le ntHeari ng Und er Sect io n 6 32 0 and/o r 63 30 of t he Int ern al Rev enue Co de (de ci si onlet te r). The de ci si on let te r st at es th at , bec au se th e h eari ng reque stha d n otbe enrece iv ed withi n 3 0 d ay s o f Aug us t 4 , 20 12 , th e d at e o f th e fi na l n ot ic e, itwas n otti m el y an d pe ti ti on er was no t en ti tl edto a se ct io n 6 33 0 h eari ng bu t h adbe enacco rd edan equi va le nthe ari ng . The l et te r co nc lu de s tha t the lev y no ti ce was ap pr op ria te . Inres po ns e to th e d eci si on let te r, pe ti ti on er s ub m it te d t he pe ti ti on , whi ch we rece iv edan d fi le d o n Au gu st19 , 20 13 . OPINION I. In tro du ct io n W e m us t d et erm in e whe th er Ap pe al s m ad e a d et erm in at io n t ha t m ay be ap pe al edto th is Co urt.- 6 -

[* 6] II. Sect io ns 63 30 an d 6 33 1 Sect io n 6 33 1( a) au th or iz es th e Sec ret ary of th e Treas ury

(Sec ret ary) to l ev y ag ai ns t p ro pe rty andpro pe rty rig ht s wh ere atax pay er l iabl e fo r ta xe s fa il s t o p ay th os e ta xe s wi th in10 da y s af te r no ti ce an d d em an d fo r pa y m en t i s m ad e. Sect io n 63 31 (d ) requi res th e Sec ret ary to sen d wri tt enno ti ce o f anin te ntto lev y to th e ta xp ay er, an d s ect io n 6 33 0( a) re qu ire s t he Secr et ary to sen d wri tt enno ti ce t o t he ta xp ay er o f hi s ri gh t t o asec ti on 63 30 he ari ng at l eas t 3 0 d ay s b efo re an y lev y is be gu n. Se ct io n 6 33 0( f) el im in at es th e requi rem en t o f a p re-l ev y he ari ng no ti ce i n th e cas e o f a l ev y

to co ll ectSta te tax refu nd s o win g t o the tax pa y er. The tax pa y er m us t, h owe ve r, be gi ve n the rig htto a he ari ng withi n areas on ab le ti m e aft er the le vy. Id . A tax pa y er m

us t re qu es t a s ect io n 6 33 0 h eari ng withi n 3 0 d ay s o f th e da te of t he writ te n s ect io n 6 33 0 n ot ic e. Sec. 6 33 0( a)(3 )(B) ; s ec. 3 01 .63 30 -1 (b )(1 ), (c)( 2) , Q&A-C3 , Pro ced . & Adm in . Reg s. If a t ax pa y er re qu es ts a se ct io n 6 33 0 h eari ng , th e h eari ng is to be co nduc te d by Appe al s. Sec . 63 30 (b )(1 ). Sect io n 6 33 0( c) s pe ci fie s t he m at te rs th atm ay be co ns id eredat t he he ari ng . At th e co nc lu si on of t he he ari ng , App eal s i s t o i ss ue a de te rm in at io n. Se e se c. 63 30 (c)( 3) . The t axpa y er h as 30 da y s wi th in whi ch to ap pe al th e d et erm in at io n t o t he Tax C ou rt, andwe have juri sd ic ti on to rev ie w it . Sec. 6 33 0( d) (1 ).- 7 -

[* 7] If the tax pa y er d oe s n otreque sta se ct io n 6 33 0 h eari ng withi n 3 0 d ay s o f th e da te of t he writ te n s ect io n 6 33 0 n ot ic e, th e ta xp ay er fo rg oe s t he rig htto a se ct io n 63 30 he ari ng with re sp ectto th e u np ai d t ax an d t ax pe rio ds sh ownon th e n ot ic e. Sec. 3 01 .63 30 -1 (c)( 2) , Q&A-C7 , Pro ced . & Adm in . Reg s. In li euof asec ti on 63 30 he ari ng , th e ta xp ay er wi ll be off eredanequi va le nthe ari ng . Id.; sec . 30 1.6 33 0- 1( i)( 1) , Pro ced . & Adm in . Reg s. Anequi va le nthe ari ng is co nduc te d b y App eal s an d c on cl ud edby App eal s' s en di ng th e ta xp ay er a d eci si onlet te r rat he r th ana de te rm in at io n n ot ic e. See s ec. 3 01 .63 30 -1 (i) (1 ), Pro ced . & Adm in . Reg s. Gen eral ly, a ta xp ay er m ay no t ap pe al to th is Co urt a d eci si on let te r co nc lu di ng an equi va le nthe ari ng , si nc e, ge ne ral ly, we la ckjuri sd ic ti on to rev ie w a de ci si on le tt er. See Sev ero v. Co m m is si on er, 1 29 T.C. 16 0, 1 63 (20 07 ), aff'd , 58 6 F .3d 12 13 (9t h C ir. 2 00 9) . III. Part ie s' Arg um en ts Res po nd en t ar gu es th atwe m us t d is m is s t hi s ca se for

lac k o f juri sd ic ti on be cau se pe ti ti on er d idno t m ak e a t im el y an d p ro pe r reque stfor

a se ct io n 6 33 0 he ari ng an d we h av e n o autho rit y to rev ie w th e equi va le nthe ari ng th atsh e d id rece iv e. Res po nd en t ad dr es se s b ot h t he Ju ly 24 l et te r, whi ch he arg ue s was bo th a pr em atur e h eari ng reque stan d o th erwi se im pr op er, an d t he he ari ng reque st , whi ch he arg ue s was a ta rdy

he ari ng reque st .- 8 -

[* 8] Res po nd en t ar gu es th atth e Ju ly 24 l et te r was pre m atur e b ecau se itwas b ot h
m ai le d b y pe ti ti on er an d re cei ve d b y th e IRS be fo re re sp on de ntsen t the fin al no ti ce t o p et it io ne r. Mo reo ve r, res po nd en t ar gu es th atth e Ju ly 24 l et te r, ev enif co ns id eredti m el y , was i m pr op er b ecau se itwas n otm ai le d t o t he IRS o ffi ce who se ad dr es s i s o n t he face of the fin al no ti ce, co nt rad ic ti ng th e in st ru ct io n i n se ct io n 3 01 .63 30 -1 (c)( 2) , Q&A-C6 , Pro ced . & Adm in . Reg s., tha t the reque stfora se ct io n 6 33 0 h eari ng be returne d t o the IRS o ffi ce an d a ddres s as di rect edinth e se ct io n 6 33 0 n ot ic e. Res po nd en t ar gu es th atth e h eari ng reque stwas 9 2 d ay s t ardy si nc e itwas m ai le d t o the IRS o n Dec em be r 4, 2 01 2, wh ic h was 12 2 d ay s af te r th e Aug us t 4 , 20 12 , dat e o f th e fi na l n ot ic e. Pet it io ne r di d n oton bri ef ad dr es s t he is su e o f whe th er s he ha d t im el y m ad e a reque stfora se ct io n 6 33 0 h eari ng de sp it e b ei ng in stru ct edby the Co urt dur in g th e ev id en ti ary he ari ng he ldinth is cas e th atsh e m us t. IV. Dis cu ss io n A. In tro du ct io n Res po nd en t s en t the fin al no ti ce t o p et it io ne r on Aug us t 4 , 20 12 . If sh e d id no t the reaf

te r an d o n o r be fo re Se pt em be r 4, 2 01 2 (i .e., withi n 3 0 d ay s) , reque sta se ct io n 6 33 0 h eari ng , sh e fo rfei te d h er ri gh t t o asec ti on 63 30 he ari ng with re sp ect to th e u np ai d t ax an d t he y ears sh own on th e fi na l n ot ic e. See s ec. 3 01 .63 30
-- 9 -

[* 9] 1(c )(2 ), Q&A-C7 , Pro ced . & Adm in . Reg s. Gen eral ly, we la ckjuri sd ic ti on to rev ie w a de ci si on let te r is su edco nc lu di ng anequi va le nthe ari ng . See Sev ero v. Co m m is si on er, 1 29 T.C. at 1 63 ; M cCu ll ar v . Comm is si on er, T.C. Mem o. 2 01 4- 15 0, at*6 . B. Ju ly 24 l et te r Sect io ns 63 30 an d 6 33 1 b ot h p ro vi de 30 -d ay no ti ce re qu ire m en ts . Res po nd en t m ay

co nc urren tl y

sat is fy bo th no ti ce re qu ire m en ts with o ne no ti ce. See, e.g ., Renni e v . Comm is si on er, T.C. Mem o. 2 00 2- 29 6, 2 00 2 WL 31 87 51 20 , at *3 ("In acco rdwith s ect io ns 63 30 (a) a nd63 31 (d ), res po nd en t p ro vi de d p et it io ne r with afin al no ti ce o f in te ntto lev y , whi ch als o i nc lu de d n ot ic e o f pe ti ti on er's rig ht to anadm in is tra ti ve ap pe al of r es po nd en t's de ci si onto co ll ectth e ta x." ). In f act , th e fi na l n ot ic e st at es th atitis th e n ot ic e requi redby sect io ns 63 30 an d 6 33 1 t ha t res po nd en t i nt en ds to lev y an d t ha t p et it io ne r m ay

ap pe al th e in te nd edlev y by reque st in g asec ti on 63 30 he ari ng . The l ev y no ti ce s ta te s o nl y

th atitis th e n ot ic e requi redby sect io n 6 33 1( d) . It ad ds th at , if p et it io ne r st il l o wes tax aft er the IRS ta ke s an y Sta te tax refu nd , "we m ay sen d youa no ti ce g iv in g youa ri gh t t o a he ari ng be fo re the IRS Offi ce o f App eal s" be fo re l ev y in g o n h er p ro pe rty. Pet it io ne r res po nd edto th e le vy no ti ce b y reque st in g asec ti on 63 30 he ari ng an d c ha ll en gi ng he r li ab il it y forth e p en al ty. The J ul y 24 let te r was pre m atur e to- 10 -

[* 10 ] reque sta se ct io n 6 33 0 h eari ng , si nc e th e fi na l n ot ic e was no t s en t u nt il Aug us t 4 , 20 12 , whi ch op en edth e 3 0- da y win do w forpe ti ti on er t o re qu es t a se ct io n 6 33 0 h eari ng . See s ec. 3 01 .63 30 -1 (c)( 2) , Q&A-C7 , Pro ced . & Adm in . Reg s. A pr em atur e reque stfor a se ct io n 6 33 0 h eari ng is in effe ct iv e. Andre v . Co m m is si on er, 1 27 T.C. 68 , 74 (20 06 ). Andwhi le on Aug us t 2 3, 2 01 2, re sp on de ntackno wled ge d t he Ju ly 24 l et te r, st at in g t ha t i t h adbe enrece iv edon Aug us t 9 , 20 12 , res po nd en t h as co nv in cedus th atth e ackno wled gm en t was inerro r an d s ho ul d h av e st at edth atth e Ju ly 24 l et te r was pro ces se d b y

res po nd en t's Mem

ph is off ic e o n t ha t d at e. Co pi es of p os ta l se rv ic e fo rm s ac co m

pa nyin g t he co py of th e Ju ly 24 l et te r th atis inev id en ce s ho w rece ip te d d el iv ery to th e IRS on Ju ly 30, 2 01 2. Inan y ev en t, p et it io ne r ha s m ad e no arg um en t tha t s he was m is le d b y res po nd en t's m is ta ke n a ckno wled gm en t i nt o th in ki ng th atth e Ju ly 24 l et te r ha d b een acce pt edby resp on de ntas ahe ari ng reque stinres po ns e to th e fi na l n ot ic e. Fi na ll y , res po nd en t ar gu es th atwe sh ou ldtak e in to acco un t tha t the Ju ly 24 le tt er was no t s en t t o t he IRS o ffi ce wh os e ad dr es s i s o n t he face of t he fin al no ti ce. Itis tru e th atpe ti ti on er d idno t s en d t he Ju ly 24 l et te r to th atad dr es s, co nt rav en in g t he in st ru ct io ns inth e reg ul at io ns forwher e reque st s fo r se ct io n 63 30 he ari ng s s ho ul d b e se nt . See s ec. 3 01 .63 30 -1 (c)( 2) , Q&A-C6 , Pro ced . &- 11 -

[* 11 ] Adm in . Reg s. In Andre v . Comm is si on er, 1 27 T.C. at 7 3, we empha si zed th e im po rtanc e to th e IRS of p ro cedur al co ns is te nc y ineffe ct iv el y

an d e ffi ci en tl y pr oc es si ng sec ti on 63 30 he ari ng reque st s. We do no t ch an ge our vi ew. The Ju ly 24 l ette r was no t an effec ti ve reque stfora se ct io n 6 33 0 h eari ng , an d re sp on de ntm ad e n o d et erm in at io n re vi ewab le by us u nd er s ect io n 6 33 0( d) (1 ) in res po ns e to th atlet te r. C. Heari ng Reque st The he ari ng reque stwas n ota ti m el y reque stfora se ct io n 6 33 0 h eari ng . In de ed , pet it io ne r's rep res en ta ti ve ask edon ly for anequi va le nthe ari ng . Becau se th e h eari ng reque stwas n otti m el y , App eal s t reat editas areque stforan equi va le nthe ari ng an d c on cl ud edth e h eari ng by sen di ng a de ci si on let te r to pe ti ti on er. W e h av e n o aut ho rit y to rev ie w th e d eci si on let te r. See Se ve ro v. Co m m is si on er, 1 29 T.C. at 1 63 ; M cCu ll ar v . Comm is si on er, at*6 . V. Co nc lu si on W e h av e n o autho rit y

un de r se ct io n 6 33 0( d) (1 ) to rev ie w th e d eci si on let te r, an d, fo r th atreas on , we wil l d is m is s t hi s ca se forlac k o f juri sd ic ti on . An ap pr op ria te ord er o f di sm is sa l wi ll be en te red .