1 4 8 T.C. No . 1 4

UNITED STATES TAX COURT

J OHN C. TRIM M ER AND SUSAN TRIM M ER, Pet i t i o ners v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 2 7 2 38 -1 4
. Fi l edAp ri l 2 0 , 2 0 1 7
.

Wh i l e s u fferi n g fro m

m ajo r d ep res s i v e d i so rd er aft er ret i ri n g fro m th e NYPD i n 2 0 1 1 , H recei vedtwo d is tri bu t i o n s fro m h i s ret i rem en tacco u n t s b u t d i dn o tro l l them o v er i n t o an o th er q ual i fi ed ret i rem en tacco u n twi th in the req u i s i t e 6 0 -d ay p eri o d o f I.R.C. s ec. 4 0 2 (c)(3 )(A). When Ps ’ t ax retu rn p rep arer p o i n t edo u tthe p ro b l em s o m e m on th s l at er, H ro l l ed th e fu nd s o v er i nt o an IRA. Ps n ev er u s edan y o f t h e fu nd s . Onth ei r 2 01 1 retu rn Ps rep o rt edth e t wo d i s tri b u t i on s as n o nt ax ab l e. Du ri n g R’ s ex am i n at i o n o f Ps ’ 2 0 1 1 t ax retu rn , Ps req u es t eda h ard s h i p wai v er fro m th e 6 0 -d ay

ro l l o ver req u irem en t. R d en i edth e req u es tan dd et erm i n eda d efi ci en cy i n Ps ’ 2 0 1 1 t ax . R co n ten d s th at R’ s Ex am i n at i o n Di v i s i o n l ack edth e au tho ri ty t o co n s i d er a h ard s h i p wai v er u n d er I.R.C. s ec. 4 0 2 (c)(3 )(B) an dth at i n an y ev en t R’ s ex erci s e o f d is cret i o n i n d en y i n g a h ard s hi p wai v er i s n o ts ub jectt o ju d i ci al rev i ew. Hel d : R’ s Ex am i nat i o n Di v is io n h adthe au th o ri ty t o co ns i d er Ps ’ req u es tfo r a h ard s h i p wai v er u n d er I.R.C. s ec. 4 0 2 (c)(3 )(B). See- 2
-

Rev . Pro c. 2 0 0 3 -1 6 , 2 0 0 3 -1 C.B. 3 5 9 , as m o d i fi edret ro sp ect iv el y b y Rev . Pro c. 2 0 1 6 -4 7 , 2 0 1 6 -3 7 I.R.B. 3 4 6
. Hel d , fu rt h er, t h e Tax Co u rth as juri s d i ct i o n i n t h i s d efi ci en cy p ro ceed i n g t o rev i ew R’ s d en i al o f Ps ’ req u es tfo r a wai v er o f t h e 6 0
- d ay ro l l o v er req u i rem en t
. Hel d , fu rt h er, R’ s o b

ject io n s t o Ps ’ p ro ffered ex p ertt es t i m o n y are o v erru l ed ; th e ex pert t es t i m o n y wi ll b e ad m i tt edi n t o ev i d en ce. Hel d , fu rt h er, i n th e fact s an d ci rcu m s tan ces o f t h i s cas e, i t wo u ldb e “ ag ai n s t equ it y o r g o o d co n s ci en ce”, wi th i n the m ean i n g o f I.R.C. s ec. 4 0 2 (c)(3 )(B), t o d en y Ps ’ req u es tfo r a h ard s hi p wai v er; th e t wo d i s tri b u ti o n s are ex cl u d edfro m Ps ’ 2 01 1 g ro s s i n co m e. Hel d , fu rt h er, R’ s i m

p o s i t i o n o f t h e I.R.C. s ec. 7 2 (t ) ad d i t i o n al t ax o n earl y

d i s tri b ut io n s i s n o ts u s t ai n ed
. Hel d , fu rt h er, R’ s d et erm i n at io n th at Ps fai l edt o rep o rt$ 4 0 o f t ax ab l e d i v i d en di n co m e i s s u s t ai n ed
.

El i zab et h An n M ares ca, Am an d a Kat l o wi t z (s tu den t ), Rav i Pat el (s tu d en t ),
an d Reg i n a Yo o n (s tud en t ), fo r p et i t i o n ers . M ari s s a J . Sav i tan dLy l e B. Pres s , fo r res p o n den t
.
THORNTON, Jud g e: Th e In t ern al Rev en u e Serv ice (IRS) d et erm i neda $ 3 7 ,9 1 8 d efi ci en cy

i n p et it i o n ers ’ 2 0 1 1 Fed eral i n co m e t ax . Th e i s su es fo r d eci s i o n are: (1 ) wh et h er p et i t i o n ers s ho u ldrecei v e a h ard s hi p wai v er u nd er- 3
-

s ect i on 4 0 2 (c)(3 )(B) wi th res p ectt o p en s i o n d i s tri b u t i o n s t h atM r. Tri m m er recei v edfro m

ret i rem en tacco un t s b u td i d n o tro l l o v er i n t o an o th er q u al i fi ed ret i rem en tacco u n twi th in 6 0 d ay s ; (2 ) wh et h er p et i t i o n ers are l i ab l e fo r t h e 1 0 % ad d it i o n al t ax u n d er s ect i o n 7 2 (t ); an d(3 ) wh et her p et i t i o n ers fai l edt o rep o rt$ 4 0
o f d i v i d en di n co m e. 1 FINDINGS OF FACT Th e p art i es h av e s t ip ul at eds o m e fact s , wh i ch we fi n dan di nco rp o rat e b y th i s referen ce. Pet i t i o n ers res i dedi n New Yo rkwh en th ey p et i ti o nedth i s Co u rt
. Pet i t i o ners h av e b een m arri edo v er 2 5 y ears an dh av e t wo s o n s . M rs . Tri m m er h as b een a New Yo rk Ci ty s ch o o l t each er atal l rel ev an t t i m es . M r. Tri m m er s erv edas a p ol i ce o ffi cer wi th th e New Yo rkPo l i ce Dep art m en t(NYPD) fo r 2 0 y ears u n t il h i s ret i rem en to n Ap ri l 3 0 , 2 0 1 1 , wh en h e was 4 7 y ears o l d
. Befo re ret i ri ng fro m

th e NYPD M r. Tri m

m er h ads ecu reda p o s i ti o n as a
s ecu ri ty g u ardwi th th e New Yo rkSt o ckEx ch an g e t o s up p l em en th is p en s i o n i n co m e fro m

th e NYPD an dh el p fi n an ce h i s s o n s ’ co l l eg e edu cat i o n s . Sh o rt l y aft er h e ret i redfro m

th e NYPD, h o wev er, t h i s n ew jo b fel l th ro ug h . He was

1 Al l s ect i o n referen ces are t o th e In tern al Rev en u e Co d e (Co de) at al 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. Al l m o n et ary am o u n t s are ro u nd edt o the n eares t d o l l ar.- 4
-

u n ab le t o fi n dan o th er p o s i t i o n i m m ed i at el y , an dNYPD p o l i cy p rev en teda ret i red
o ffi cer fro m

retu rn i n g t o wo rkth ere. Ab o utth ree week s aft er ret i ri n g M r. Tri m m er b eg anex p eri en ci n g s ym p t o m s
o f m ajo r d ep res si v e d i s o rd er. In a s t ark d ep artu re fro m h i s p re-ret i rem en t p ers o n al i ty , h e b ecam e an t i s o ci al , i rri t ab l e, an du n co m m u n i cat i v e wi th h i s wi fe
an d two s o ns . He rarel y

l efth i s h o u s e. He h adtro ub l e s leep i n g , an d h e l o s t wei g h t
. He n eg l ect edh i s h y g i en e an d g ro o m i n g . He s t o pp ed co ach i n g h i s s o n s ’
s p o rt i n g ev en t s an ds t o p p edat ten d i n g th ei r s ch o o l ev en ts , wh ich h e h ad p rev i o u s l y at t en d edwi th o u tfai l . Al th o u g h h e o ccas i o n al l y wro t e ch eck s fro m p et i t i o n ers ’ jo i n tch eck i n g acco u n t(g en eral l y atth e req u es to f h is wi fe o r s o n s ),
o th erwi s e, as h e t es t i fi ed , h e “ k i n do f ju std i dn ’ t d o m u ch o f an yth i n g ”. M rs . Tri m

m er t es ti fi edth atdu ri ng th i s t i m e h er h u s b an d was “ l i k e a l o s t
s o u l ”, an dwh en s h e cam e h o m e fro m wo rki n th e ev en i n g s he wo u l d o ft en fi n d h i m wh ere s he h adl efth i m

i n t h e m o rn i n g. Lo om i n g fi n an ci al p res su res cau s ed
m ari t al t en s i o n . M r. Tri m m er was s o ch an g ed th atM rs . Tri m m er cam e t o b el i ev e th ats h e co ul dn o td ep en d o n h i m t o carryo u t t as ks h e h adp rev i o us l y p erfo rm ed rel i ab l y . Sh e fel t th ats h e n eed edt o m o n it o r M r. Tri m m er, s o t h ats h e m i g hto ffer
en co urag em en t o r i n terv en e t o h el p h i m th ro ug h ev en t s o r act i v i t i es .- 5
-

Th ro u g h h i s em

p l o ym en twi th th e NYPD M r. Tri m m er h ad ret i rem en t
acco u n t s wi th th e New Yo rkCi ty Em p l oy ees ’ Ret i rem en t Sy s tem an d t h e New Yo rkCi ty

Po l ice Pen s i o n Fu n d(ret i rem en tacco u n ts ). OnM ay 2 7 an d J u n e 1 0 , 2 0 1 1 --aft er h i s m ajo r d ep res si o n h ads eti n --M r. Tri m m er recei v edfro m

h i s ret i rem en tacco u n t s d i s tri bu t i o n ch eck s fo r $ 9 9 ,9 9 0 an d$ 1 ,6 8 0 (t wo d i s tri b u t i o n s ). Th es e ch eck s l ay o n h i s dres s er ath o m e fo r o v er a m o n th u n t i l , o n J u l y 5 , 2 0 1 1 , h e d ep o s i t edth em i n t o p et i t i o n ers ’ jo i n tb an kacco u n t
. Al th ou g h p et i t i o n ers h adco n ferred ab o u tM r. Tri m m er’ s ret i rem en t , M rs . Tri m m er d i dn o t kn o wex act ly wh atn eed edt o b e d o n e an dd i dn o tg eti n v ol v edi n th i s m at t er; s h e as s u m edth ath e was h an dl i ng h i s ret i rem en t . Th i s was i n k eep i ng wi th p et i t i o n ers ’ d i v i s i o n o f h o u s eh o l ddu t i es : Wh i l e M rs . Tri m m er h an d l edm an y
o f t h e d ay -t o -d ay

b il l -p ay i n g res p o n s i b i l i t i es fo r p et i ti o n ers ’ fam i l y , M r. Tri m m er h an dl ed th ei r “ l arg e-s cal e” i n v es t m en t d eci si on s , s u ch as p l an ni n g fo r ret i rem en t
an d co l l eg e s av i ng s . M r. Tri m m er al so cu s t om ari l y

h an d l edthe fam i l y ’ s t ax es , co l l ect i ng th e
n eces s ary i n fo rm at i o n , m ak i n g an ap p o i n t m en twi th a t ax retu rn p rep arer, an d
ev en tu al l y

b ri n g i n g th e co m

p l et edfo rm s h o m e fo r M rs . Tri m m er t o s i g n. Befo re ret i ri ng , h e wo u l du s u al l y h av e p et i t i on ers ’ t ax retu rn s p rep ared earl y , u s u al l y i n Feb ru ary , s o th atp et it i o n ers co u l drecei v e an y refu ndearl y .- 6
-

In th e s p ri n g o f 2 0 1 2 , h o wev er, s ti l l s u fferi n g fro m d ep res si o n , h e h adt o b e
rem i n d edrep eat ed l y b y

M rs . Tri m

m er t o h av e t h ei r 2 0 11 retu rn p rep ared . Fi n al l y , as th e du e d at e fo r t h e ret u rn ap p ro ach ed , M r. Tri m m er wen tt o p et i t io n ers ’ reg u l ar t ax return p rep arer t o h an dl e t h ei r 2 0 11 t ax es . In earl y 2 0 12 M r. Tri m

m er h adrecei v edFo rm s 1 0 9 9 -R, Di st ri b u t i o n s Fro m Pen si o n s, An n u i t i es , Ret i rem en to r Pro fi t-Sh ari n g Pl an s, IRAs , In s u ran ce Co n tract s , et c., rep o rt i n g th e t wo d i s tri b u t io n s wi th t ax ab l e am o u n t s o f $ 9 9 ,9 9 0
an d $ 7 1 0 rep o rt edi n b ox es 2 a. He g av e th es e fo rm s t o th e ret u rn p rep arer, wh o
n o t i cedth atthe Fo rm s 1 0 9 9-R fo r t h e t wo d i s tri b u t io n s i n d i cat eda d i s tri b u t i o n
co d e o f “ 1 ”: “ Earl y

d i st ri b u t i o n , n o kn own ex cep t i o n ”. Th e ret urn p rep arer ad v is edM r. Tri m

m er t o p u tthe t wo d i st ri b u t i o n s i n t o an IRA. OnM arch 2 9 , 2 0 1 2 , p et it i o n ers fi l edth ei r 2 0 1 1 Fo rm 1 0 4 0 . Th ey

rep o rt ed th e t wo d i s tri b u ti o n s as n on t ax ab l e. 2 OnAp ri l 1 6 , 2 0 1 2, act i n g up o n h i s return p rep arer’ s ad vi ce, M r. Tri m m er
o p en edan IRA atth e s am e b an kwh ere p et i t i o n ers h add ep os i t edth e two d i s tri b u t i o n s an d im

m ed i at el y ro l l edth e fu n ds o v er t o th e n ew IRA. Bet w een th e

2 Th ey d i dn o t rep o rta $ 4 0 d i v i d en d wh i ch th ey h adrecei v edi n 2 0 1 1 o n cert ai n s to ckth atM r. Tri m m er h adb o u g h t , u s i n g h i s So ci al Secu ri ty n u m b er, wh en h i s s on was a n ewb orn .- 7
-

t i m e M r. Tri m

m er recei v ed th e t wo d is tri b u t i o n s an dth e t i m e h e o p en ed th e IRA, p et i t i o n ers d i d n o tm ak e an y u s e o f t h e fu n d s fro m the t w o d i s tri b ut i o n s . Gradu al ly M r. Tri m m er’ s d ep res si o n b eg an t o d i ss i p at e; b y th e s u m m er o f 2 0 1 2 i t was i n rem i s s i o n . OnDecem

b er 1 6, 2 01 3 , res p o n d en ti s s u edt o p et i t i o ners a No t i ce CP2 0 0 0 , Pro p os edCh an ges t o Yo ur 2 01 1 Fo rm 1 0 40 , as s ert i n g thatp et it i on ers h adfai l ed t o rep o rt$ 10 0,7 0 0 o f t ax ab l e ret i rem en ti n co m e fro m th e t wo d i st ri b u t i o n s ; th at th ey were l i ab l e u n d er s ect io n 7 2 (t ) fo r anad d i ti o n al 1 0 % t ax o n p rem atu re d i s tri b u t i o n s fro m

a qual i fi edp l an ; an d th atth ey h adfai ledt o rep o rt$ 4 0 o f t ax ab l e d i v i d en di n co m e. Th e No t i ce CP2 0 0 0 i n d icat edth at , b ecau s e o f t h es e p ro p os edch an ges , p et i t i o n ers o wed $ 3 9 ,9 6 3 i n ad d i t io n al t ax es . Th e No t i ce CP2 0 0 0 ad v is edp et i t i o n ers th ati f t h ey d i s ag reedwi th t h e p ro p os edch an g es , th ey
s h o u ldco m

p let e an at tach ed res p o ns e fo rm an ds en di tt o t h e IRS b y J an uary1 5 , 2 0 1 4 ; o th erwi se, t h e l et t er i nd i cat ed , th e IRS wo u l ds en dp et i t i o n ers a n o t i ce o f d efi ci en cy

refl ect i n g th e p ro po s edch an ges . Pet i ti o ners req ues t ed an ex t en s i o n , an d b y l et t er d at edM arch 2 7 , 2 0 1 4 , th e IRS g ran t edth ei r req u es t , ex t en d i n g th e
res p o n s e d at e t o Ap ri l 2 3 , 2 0 14
.- 8
-

OnAp ri l 3 0 , 2 0 1 4, M r. Tri m m er s en tth e IRS a l et t er wh i ch s t at edi n i t s
en t i ret y : 3 Dear Si rs : I am co n t es t i n g t h e am o u n t o f m o ney s ai dt o b e o wed . Pl eas e al l o w m e t o ex p l ai n th e s i tuat i o n . InAp ri l 2 0 1 1 I ret i red fro m m y jo b an d t o o ka p en si o n l o an . Aft er m y ret irem en t I wen tth ro u g h a p eri o do f d ep res s i o n an dwas n o tm an ag i n g m y affai rs . I recei v edm

y ch eckfo r th e l o an an dd ep o si t edi ti n t o San t an der b an ko n J u ly 5 , 2 0 1 1 . Th e m o n ey rem ai n edi n th i s acco u n tu n t i l Ap ri l o f 2 0 12 wh en i twas s wi t ch edt o an I.R.A. i n t h e s am e b an k wh ere i trem ai n s t o th i s d ay . A few p oi n t s - Th ere was n o d ecep t i o n o r s p en d i n g , i n v es t i ng o f t h e m o n ey atal l . I recei v edth e ch eckan dd ep o s it edi ti nt o th e b an k - M y wi fe an dI h av e b een p ay i n g t ax es fo r a co m b i n ed6 0 y ears an dNEVER h ad th e l eas t b i t a p ro b l em . - Th ere was n o h arm

d on e t o an y o ne wi th t h e m o ney s tay i n g i n th e b an kex cep t m e (I was recei v i n g 0 .2 5 % i n t eres t .) - I s wi t ch edth e m o n ey

t o an I.R.A. b efo re I was n o t i fi edb y th e I.R.S. I am n o w em

p lo y edag ai n an dam

dri v i n g a s ch o o l b u s an dh av e a s o n i n co l leg e an d an o th er a y ear away . To p ay $ 4 0 ,0 0 0 i n t ax es fo r

3 Th e co py

o f t h e l et t er i n th e reco rdi s n ot d at ed , b u tres p o n den th as s t ip u l at edi t s au th en t ici ty an dh as p ro p o s ed as a fi n d i n g o f fact , u n o p p o s edb y p et i t i o n ers , th atM r. Tri m m er s en tth e l et ter t o res p o nd en t “ [a] t s o m e t i m e aft er res p o n d en t i s s uedthe No t i ce CP2 0 0 0 t o p et i t i o n ers ”. Becau s e, as d es cri b edi n fra, res p o n d en t s ub s equ en t l y

s en t two l et t ers t o p et i ti o n ers referen ci n g th ei r co rres p o n d en ce o r res p on se o f Ap ri l 3 0 , 2 0 1 4, an db ecau s e t he ad m i n i s trat i v e reco rdi n ev i d en ce co n t ai n s n o o th er co rres p o n d en ce fro m p et it i on ers th atfi t s th i s d es cri p t io n , we fi ndth atM r. Tri m m er s en th is l et t er o n Ap ri l 3 0, 2 0 14
. Res po n d en th as rai s edn o i s s ue ab ou tp et it i on ers ’ res p o n s e b ei n g l at e; we d eem an y s u ch i s s u e t o b e wai v ed
.- 9
-

m o n ey thati s i n an I.R.A. wo u l dab s ol u t el y cri p pl e m

y fam i l y as i t wo u ldb e 3 y ears o f m

y s al ary . Si r n o h arm

was d o n e t o an y o n e. I wen tth ro u g h a ro u g h t i m e up o n s ep arat i on fro m m y jo b , cau s i n g m e em o t i o n al h ardt i m es thatcau s edth i s s i tu at i o n . Pen al izi n g m e an d m y fam i l y wo u l dn otb en efi t an y

b o dy , o n l y

cau s e ex trem e du res s an d p u n i s h m y ch i l dren wh o p l ay edn o p arti n th is s i tu at i o n . I as ky o ut o co n s i d er th es e fact s an dp l eas e co m e t o a fai r d eci s i o n. Pl eas e co nt act m e i f y o u n eedat[p h o n e n u m b er red act ed ]
. Th an kYo u , J o h n Tri m

m er By l et t er d at ed J un e 3 , 2 01 4 , th e o p erat i o n s m an ag er o f t h e IRS An d o v er, M as s ach u s et ts , Serv i ce Cen t er t h an k edp et i t i on ers fo r t hei r Ap ri l 3 0 , 2 0 1 4 , co rres p o n d en ce an ds t at ed : “ Yo ud o n ’ tn eedt o d o an yth i ng el s e fo r n o w. W e wi l l
co n tacty o uag ai n wi th i n 6 0 d ay s t o l et y o ukn ow wh atact i o n we are t ak i n g .” Pet i t io n ers d i dn o th av e t o wai tl o n g , h o wev er, fo r b y l et ter d at ed o n l y

th ree d ay s l at er--J u n e 6 , 2 0 1 4--t h e o p erat i o n s m an ag er s u m m ari l y d en i ed p et i t io n ers ’ req u es t fo r rel i ef, s t at i ng o n l y : “ T h e l aw requ i res y o ut o ro ll o v er y o u r d i s tri b u t i o n wi t h i n 6 0 d ay s o f t h e d i s tri b u ti o n d at e. If t h e ro l l o v er ex ceed s the t i m e fram e i tb eco m es fu l l y t ax ab l e.” Th e l et ter d i dn o tm en t i o n res p on d en t ’ s s t atu t o ry au th o ri ty t o g ran t h ard s h i p wai v ers o r an y

p ro cedu re fo r ap p l y in g fo r o n e; n o r d i di tackn owl ed g e M r. Tri m m er’ s p art i cu lar ci rcu m s t an ces as d es cri b ed i n h i s l et t er. M uch l i k e t h e
o ri g i nal No t i ce CP2 00 0 t o wh i ch p et i t io n ers h ad al read y res p o n d ed , th e o perat i o n
m an ag er’ s l et t er s t at ed : “ If y o ud o n ’ tag ree wi th o u r p ro po s edch an ges , wri t e t o u s- 1 0 -

an d t el l u s wh y .” Th e l et t er fu rt h er i n d i cat edthati f t h e IRS h ad n o t h eardfu rt h er fro m p et i t i o n ers b y

J u ly 2 , 2 01 4 , “ we wi l l co n t i n u e t o p ro ces s t h e p ro p os ed ch an ges t o y o u r return b as edo n th e i n fo rm at io n we cu rren t ly h av e.” OnAu gu s t1 8 , 2 0 1 4, the IRS i s s u eda n o ti ce o f d efi ci en cy refl ect i n g th e ch an ges p ro po sed i n th e No t ice CP2 0 0 0 . Pet i t i o ners t i m el y p et i t i o n ed th i s Co u rt
. OPINION I. Bu rd en o f Pro o f Th e Co m m is s i o n er’ s d et erm i n at i o n s i n a n o t i ce o f d efi ci en cy are g en eral l y p res u m edco rrect , an dth e t ax p ay er b ears th e b urd en o f p ro v i n g t h em erro neo u s . Ru l e 1 4 2 (a)(1 ); W el ch v . Hel v eri n g , 2 9 0 U.S. 1 1 1 , 1 1 5 (1 9 3 3 ). Pet i ti o n ers d o n o t
co n ten d , an d th e ev i d en ce d o es n o tes t ab l i s h , th atth e b u rd en o f p ro o f s h i ft s t o
res p o n d en t u n der s ect i o n 7 4 9 1 (a) as t o an y i s s u e o f fact
. II. Tax ab i l it y

o f IRA Di s tri b u t i o ns A. Gen eral Pri n ci p l es Sect io n 6 1 (a) p ro v i des g en eral l y th at“ g ro s s i n co m e m ean s al l i n co m e fro m wh at ev er s o u rce d eri ved ”. Sect i o n 4 0 2 (a) p ro v i d es th at “ an y am o u ntactu al l y d i s tri b u t edt o an y

d i s tri b u t ee b y

an y em p l o y ees ’ tru s td es cri b edi n s ect i on 4 0 1 (a) wh i ch i s ex em

ptfro m t ax u n d er s ect i o n 5 0 1(a) s h al l b e t ax ab l e t o th e d i s tri b u t ee, i n the t ax ab l e y ear o f t h e d i s tri b u t ee i n wh i ch d i s tri b u t ed , u n d er s ect i o n 7 2- 1 1 -

(rel at i n g t o an n u i t i es ).” Th ere i s n o d i sp u te t h atth e two d i s tri b u t i on s were actu al l y m ad e t o M r. Tri m

m er i n 2 0 1 1 fro m

h i s ret i rem en tacco u n t s, wh i ch were
em pl o y ees ’ tru s t s d es cri b edi n s ect i o n 4 0 1 (a). Sect io n 4 0 2 (c)(1 ) ex cl ud es fro m g ro s s i n co m e an y

p o rt io n o f a d i s tri b u t i o n th ati s ro l l edo v er t o an “ el ig ib l e ret i rem en t p l an ” as d efi nedi n s ect i o n 4 0 2 (c)(8 )(B). Sect io n 4 02 (c)(3 )(A) p ro v i d es : “ Ex cep tas p ro v i d ed i n
s ub p arag rap h B”, t he ro l l o v er ex cl u si o n i s n o tav ai l ab l e fo r “ an y tran s fer o f a d i s tri b u t i o n m ad e aft er t h e 6 0 th d ay fo ll o wi n g the d ay o n wh ich th e d i s tri b u t ee recei v edth e p ro p ert y

d i s tri bu t ed .” Sub parag rap h B g ran ts th e Secret ary the
au th o ri ty t o wai v e th e 6 0 -d ay

ro l l o v er req u i rem en t : Hard s h i p ex cep ti o n .--Th e Secret ary m ay wai ve t h e 6 0 -d ay

req u irem en tu n d er s ubp arag rap h (A) wh ere t h e fai l u re t o wai v e s u ch req u irem en t wo u l d b e ag ai n s tequ it y o r g o o d co n s ci en ce, i n cl u d i n g cas u al ty , d i s as ter, o r o th er ev en t s b ey o n dth e reas o n ab l e co n tro l o f th e i n di vi du al s ub

jectt o s u ch req u irem en t. M r. Tri m m er recei v edthe t wo d is tri b u t i o n s i n th e fo rm o f ch eck s o n M ay

2 7
an d J un e 1 0, 2 0 1 1 . An do n J u ly 5 , 2 0 1 1, h e d ep os i t edth e ch eck s i n t o p et it i o n ers ’ jo i n t ban kacco u n t . Th e 6 0 -d ay ro l l o v er p eri od s en d ed J ul y 2 6 an d Au g us t9 , 2 0 1 1 , res p ect i v el y .- 1 2 -

B. Th e Part i es ’ Co n t en t i on s Pet i t i o ners d o n otd i sp u t e t h atM r. Tri m m er m is s edth e 6 0-d ay d ead l i n e fo r
ro l l i n g o v er t he t wo d i s tri bu t i o n s , b u tth ey co nt en d th ath e qu al i fi es fo r a h ard s h i p wai v er u nd er s ect io n 4 0 2(c)(3 )(B) b ecau s e h i s fai l u re t o m ak e t i m el y ro ll o v ers was
cau s ed b y h i s m ajo r d ep res s i v e d i s o rd er du ri ng th e rel ev an t p eri o d
. Res p o n d en tco n t en d s th atth e h ard s h i p wai v er p ro v i s i o n o f s ect i o n 4 0 2 (c)(3 )(B) i s “ i n ap pl i cab le” b ecau se M r. Tri m m er fai l edt o ap pl y

fo r rel i ef p u rs u an t t o th e t erm s o f Rev . Pro c. 2 0 0 3 -1 6 , 2 0 0 3 -1 C.B. 3 59 . Res p o n d en tal s o
co n ten d s t h atth ere h as b een n o fi n al ad m i ni s trat i v e d et erm i nat i o n d en y i n g p et i t i o n ers rel i ef, an dthatev en i f t h ere h adb een , i two u ldn o tb e s ub ject t o ju d i ci al rev i ew. 4 Fu rt h erm o re, res p o n d en tco n t en d s , th ere was n o ab u s e o f d i s cret i o n i n d en y i n g p et i t i o n ers th e req u es t edwai v er, b ecau s e p et i t i o n ers h av e fai l edt o es t ab l i s h th atM r. Tri m m er was u n ab l e t o co m

p l et e t h e ro l l o v ers wi th i n 6 0 d ay s o f t h e t wo d i s tri b u t i o n s. W e ad dres s th es e arg um en t s i n tu rn . C. Au th o ri ty

To Co n si d er Hard s h i p W ai v er Req u es tDu ri n g Ex am i n at i o n In Rev . Pro c. 2 0 03 -1 6 , s up ra, t h e IRS p ro vi d ed g u i d an ce ab o u tap p l y i n g fo r h ard s h i p wai v ers u n d er s ect i o n 4 0 2 (c)(3 )(B). Sect io n 3
. 0 1 o f Rev . Pro c. 2 0 0 3 -1 6 ,

4 Bo th b efo re an daft er t ri al th e Co u rten co u rag edth e p art i es t o ex p l o re fu rt her ad m i n i s trat iv e co n s i d erat i o n o f p et i t i o ners ’ cl ai m fo r a h ard s h ip wai v er, b u tres p o n d en t d ecl i n ed
.- 1 3 -

2 0 0 3 -1 C.B. at3 5 9 , s t at es th at“ a t ax p ay er m u st ap p l y fo r a h ard sh i p ex cep t i o n ” t o th e 6 0 -d ay

ro l l o v er req u i rem en tb y

s ub m i tt i ng a req u es t fo r a p ri vat e l et t er ru l i n g
u n d er t h e p ro cedures o u tl i n ed i n Rev . Pro c. 2 0 0 3 -4 , 2 0 0 3-1 C.B. 1 2 3 , an di n cl u d e wi th th e ap p l i cat i o n th e u ser fee s etfo rt h i n Rev . Pro c. 2 0 0 3 -8 , 2 0 0 3 -1 C.B. 2 3 6. 5 OnAu gu s t2 4 , 2 0 1 6, the IRS i s s u edRev . Pro c. 2 0 1 6-4 7 , 2 0 1 6 -3 7 I.R.B. 3 4 6 , wh i ch au th o ri zes “ ad d i t i o n al ” h ard s h i p wai v ers duri n g the ex am i n at i o n o f t h e t ax p ay er’ s return . 6 Its t at es : SECTION 4 . ADDITIONAL W A IVERS DURING EXAM In ad d i t i o n t o au t o m at i c wai v ers an dwai v ers th ro u g h ap p l i cat i o n t o th e IRS u n der Sect i o n 3 o f Rev . Pro c. 2 0 0 3 -1 6 , th e IRS, i n th e co urs e

5 Sec. 3 .0 3 o f Rev . Pro c. 2 0 0 3 -1 6 , 2 0 03 -1 C.B. 3 5 9 , 3 6 0 , al s o p ro v i d es fo r “ au t o m at i c ap pro val ” o f a h ard s h i p wai v er i f t h e “ t ax p ay er fo ll o ws al l p ro cedu res req u i redb y

th e fi n an ci al i n s t itu t i o n fo r d ep o s it i n g th e fu n ds i n t o an el ig i b l e ret i rem en tp l an wi th i n th e 6 0 -d ay p eri o d* * * an d , s ol el y

du e t o an erro r o n th e p arto f t he fi nan ci al i n s t i tu t i on , th e fu n d s are n o td ep os i t ed ” wi th i n the 6 0 -d ay p eri o d . Tax p ay ers wh o qual i fy fo r “ au t o m at i c ap p ro v al ” are n otreq u i redt o s ub m i tan ap p l i cat i on t o th e IRS. Id . Th ere i s n o d is p u t e t h at the “ au t o m at i c ap p ro v al ” p ro cedu res are i n ap p l i cab l e i n th e cas e b efo re u s .

6 Rev . Pro c. 2 0 1 6-4 7, 2 01 6 -3 7 I.R.B. 3 4 6 , al s o co n t ai ns a n ew s el fcert ifi cat i o n p ro cedu re t h att ax p ay ers can u s e t o cl ai m el i g i b i l it y

fo r a wai v er fro m th e ro l lo v er req u i rem en t . Th is n ew p ro cedu re ap p l ies i f a t ax p ay er m is s es th e 6 0
- d ay ro l l o ver d ead li n e fo r an y o f 1 1 d i fferen treas o n s, i ncl u d in g “ the d i s tri b u t i o n , h av in g b een m ad e i n t h e fo rm o f a ch eck , was m i s p l aced an d n ev er cas h ed ; * * * th e d i s tri b u t i o n was d ep os i t edi n t o an drem ai nedi n an acco un tth atth e t ax p ay er m i s t ak en l y

th o u g h t was an el i g i b l e ret i rem en tp l an ; * * * [o r] th e t ax p ay er o r a m em b er o f t h e t ax p ay er’ s fam i l y was s eri ou s ly

i l l ”. Id . s ec. 3 .0 2 , 2 0 1 6-3 7 I.R.B. at3 4 7
.- 1 4 -

o f ex am i n i n g a t ax p ay er’ s i n d i v i du al i n co m e t ax retu rn , m ay d et erm i ne t h atth e t ax p ay er q ual i fi es fo r a wai v er o f t h e 6 0 -d ay ro l l o v er req u i rem en tu n d er § 4 0 2 (c)(3 )(B) o r 4 0 8(d )(3 )(I). [Id
. s ec. 4 , 2 0 1 6-3 7 I.R.B. at3 4 7 .] It al s o pro v i d es : “ Rev . Pro c. 2 0 0 3 -1 6 i s m o d i fi edb y Sect io n 4 o f th is rev en u e p ro cedure.” Id . s ec. 6
. Ad d i t i o n al l y , i ts t at es th ati t i s effect i ve o n Au g u st 2 4 , 2 0 1 6 . Id . s ec. 5
. 7 Res p o n d en t ’ s p ri m ary

p o s i t i o n i s th atth e h ard s hi p wai v er p ro vi s i o n s o f
s ect i on 4 0 2 (c)(3 )(B) are “ i n ap p l i cab l e” b ecau s e p et it i o n ers fai l ed t o req ues ta p ri v at e l et t er ru l in g an dp ay th e as s o ci at edfee, p urs u an t t o s ect i o n 3 .0 1 o f Rev
. Pro c. 2 00 3 -1 6 . Res p o n d en t co n t en d s th atb ecau se Rev . Pro c. 2 0 1 6 -4 7 , s up ra, h ad
n o tb een i s s u edas o f t h e t im e wh en p et i t i o ners ’ 2 0 1 1 ret urn was u n d er
ex am i n at i o n , “ res p on d en t ’ s ex am i n at i o n d i v is i o n d i d n o t h av e t h e au th o ri ty t o d et erm i n e wh eth er p et i t io n ers qu al i fi edfo r a wai v er.” W e are n o tp ers u ad ed . No th i n g i n Rev . Pro c. 2 0 03 -1 6 , s up ra, p u rp ort s t o l i m i t o r co n s trai n an IRS ex am i n er’ s ab i li ty t o co n s i d er a h ard s h i p wai v er du ri n g th e co u rs e o f an ex am i n at i o n . Cert ai nl y n o s u ch co n s trai n ti s fo u n d i n s ect i o n 4 0 2 (c)(3 )(B). M o reo v er, res p o n d en t ’ s p o si t io n ap p ears t o b e ato d d s wi th In t ern al

7 Rev . Pro c. 2 0 1 6-4 7, s up ra, was i ss uedaft er t h e p art i es h adfi l ed thei r p o s t tri al b ri efs . Atth e Co u rt ’ s d i rect i o n , th e p art i es fi l edl eg al m em o ran d a p ro v id i n g th ei r v i ews as t o t h e i m p act , i f an y , o f t h atrev en u e p ro cedu re o n t h i s cas e.- 1 5 -

Rev enu e M an u al (IRM ) p t. 4
. 1 0 .7 .4 (2 ) (J an . 1 , 2 0 0 6), wh i ch s t at es : “ Ex am i n ers are g i ven the au th o ri ty

t o reco m m en dth e p ro p er d i s p o s i t i o n o f al l i d en t i fi ed i s su es , as wel l as an y

i s s u es rai s edb y

th e t ax pay er.” Co n seq u en t l y , th e p u rp o s e an deffect o f t h e 2 0 1 6 m o d i fi cat i o n o f Rev . Pro c. 2 0 0 3 -1 6 , s up ra, we b el i ev e, was n o tt o creat e s o m e n ew au tho ri ty th ath adn o t p rev i o u s l y ex i st edfo r IRS ex am i n ers t o co n s i d er h ard s hi p wai v ers du ri ng
ex am i n at i o n s , b u t rat h er t o m ak e cl ear t h e ex i st en ce o f t h atau th ori ty . Th i s
co n cl u s i o n i s rei n fo rcedb y carefu l co n si d erat i on o f t h e s ubs t an ti v e co o rd in at i o n b et ween th e t wo rev en u e p ro cedu res . Sect io n 1 o f Rev . Pro c. 2 0 1 6 -4 7 , 2 0 1 6 -3 7 I.R.B. at3 4 6 , d es cri bes du al p u rp os es , t o “p ro v i d e[] fo r a s el f-cert i fi cat i o n p ro cedu re” an d t o m od i fy Rev . Pro c. 2 0 0 3 -1 6 , s up ra, “by

p ro v i di n g th atth e In t ern al Rev en u e Serv i ce m ay g ran ta wai v er duri n g an ex am i n at i o n”. Bu t th es e t wo p u rp o s es are acco m p l i sh edi n d i fferen t way s . Wh ereas s ect i on 3 o f Rev . Pro c. 2 01 6 -4 7, 2 0 1 6 -3 7 I.R.B. at3 4 7 , p ro v id es fo r a n ew s el f-cert i fi cat i o n p ro cedu re, s ect i o n 6 o f Rev . Pro c. 2 0 1 6 -4 7 , rat h er t h ans i m

p l y p ro v i d in g thatth e IRS m ay n o w g ran twai v ers du ri n g
ex am i n at i o n , i ns t eadm od ifi es Rev . Pro c. 2 0 03 -1 6 , s up ra, t o i n cl u de g u id an ce ab o ut“ Ad di t i o n al W ai v ers Du ri n g Ex am ”. Rev . Pro c. 2 0 1 6 -4 7 , s up ra, m ak es n o
m o di fi cat i o n t o th e Rev . Pro c. 2 0 0 3 -1 6 , s up ra, reg ard i n g th e n ew s el f-cert i fi cat i o n- 1 6 -

p ro cedure. Itwo u l d ap p ear t h atth e d i fferi n g t reat m en t o f ex am i n at i on au th o ri t i es
an d s el f-cert ifi cat io n p ro cedu res was p u rp o s efu l
. 8 M o reo v er, am o n g the m an y u n m o d ifi edp ro vi s i o n s o f Rev . Pro c. 2 0 0 3 -1 6 , s up ra, i s s ect i o n 4 , wh ich s t at es th atth e rev en u e p ro cedu re “ i s effect i v e o n J an u ary 2 7 , 2 0 0 3 .” As o f Au g us t 2 4 , 2 0 1 6 , th en , Rev . Pro c. 2 0 0 3 -1 6, s up ra, co n tai n s th e
n ew p ro v i s i o n fo r ad di t i o n al wai v ers du ri n g ex am i n at i o n wh i l e al so s t at i n g th at Rev
. Pro c. 2 0 0 3 -1 6 , s up ra, i s effect i v e as o f J an u ary 2 7, 2 0 0 3 . Th e effect , we th i n k , i s t o m ak e cl ear ret ro sp ect i v el y th atth e IRS h as h adth e au th o ri ty t o g ran t wai v ers du ri ng th e ex am

p ro ces s atl eas ts i n ce J an uary2 7 , 2 0 0 3 , wh enRev . Pro c. 2 0 0 3 -1 6 , s up ra, was fi rs t is s u ed
. Fu rt herm o re, t he ex am i n i n g ag en t ’ s au th o ri ty t o co n s i d er a h ard s h ip wai v er du ri n g th e ex am i n at i o n st ro n g ly i m pl i es , we b el i ev e, t h atth e t ax p ay er m ay req u es t th e wai v er. Itwo u ldb e an o m al o u s i f t h e ex am i n i ng ag en tco u l dco n s i der t h e rel i ef o n ly

i f t h e t ax p ay er h ad no treq u es t edi t
. 9

8 If t h e IRS h adi nt en d edth e effect i v e d at e o n g ui d an ce fo r wai v ers du ri n g ex am i n at i o n t o b e t he s am e as th e effect i v e d at e fo r t h e s el f-cert i fi cat i o n p ro cedure, t h ere wo u l d h av e b een n o n eedfo r t hi s carefu l l y co n s tru ct edd i fferen ce b et ween th e way s thes e tw o p i eces o f g u id an ce were i m p lem en t ed , i .e., th ere wo u l dh av e b een n o n eed t o ex p l ai n th atth e Rev . Pro c. 2 00 3 -1 6 , s up ra, i s m o di fi edb y

s ec. 4 o f Rev . Pro c. 2 0 1 6 -4 7
. 9 An das we n o tedab o v e, t h e In t ern al Rev en u e M an u al p t . 4 .1 0 .7 .4 (2 ) (J an . (co n ti n u ed ...)- 1 7 -

In fact , i t was du ri n g th e ex am i n at i o n o f p et i t i o n ers ’ 2 0 1 1 ret u rn th at
res p o n d en t, i n t h e No t i ce CP2 0 0 0 , i nv i t edp et i t i o n ers t o res p o n dt o h i s p ro p o s al t o treat th e t wo d i s tri b u t i o ns as i m m ed i at el y t ax ab l e. In res p o n se t o t h i s i n v i t at i o n M r. Tri m m er wro t e t he IRS req u es t i n g rel ief. As m i g h tb e ex pect edfro m a s el frep res en t edt ax pay er u n vers ed i n th e t ech n i cal i t ies o f t h e t ax l aw, h e d i dn o t
ex p res s l y ci t e s ect i o n 4 0 2 (c)(3 )(B). Bu t h is l et ter l eav es l i t tl e d o ubtth ath e was
s eek i n g a h ard s h i p wai v er o f t h e 6 0 -d ay ro l l o ver req u irem en t, s t at i n g am on g o t h er th i n g s th ath e “ wen tth ro u g h a ro u g h t i m e up on s ep arat i o n fro m m y jo b , cau s i n g
m e em o t i o n al h ard t i m es th at cau s edth i s s ituat i o n ”, d es cri b i n g th e d ev as t at i n g fi nan ci al effect s o n h i s fam i l y th at wo u l dres u l tfro m

i m m ed i at e t ax at io n o f th e two d is tri b u t i o n s , an dco n cl u d in g wi th a p l ea fo r a “ fai r d eci s i o n ”. No t ab l y , res p o nd en t ’ s ag en td i dn o t d ecl in e t o co n s i d er M r. Tri m m er’ s req u es t , d i d n o treq ues t th atp et i t io n ers p ro vi d e an y ad d i t i o n al i n fo rm at i o n, an d d i dn o t ad v i s e t h em

th atth ey were req u iredt o s ub m it a p ri v at e l et t er ru l i n g req u es t
o r d o an yth i n g el s e i n p art i cu l ar t o h av e t h ei r req u es tco n s id ered . To the co n trary , i n h er J u n e 3 , 2 0 1 4 , l et t er, res p o n d en t ’ s ag en tad v i s edp et i t i o n ers , i n res p o n s e t o

9 (...co n t in u ed ) 1 , 2 00 6 ), s tat es : “ Ex am i n ers are g i v en th e au th o ri ty t o reco m m en d th e p ro p er d i s p o s i t i on o f al l i d en t ifi edi s s ues , as wel l as an y i s s u es rai s ed b y

th e t ax p ay er.” (Em p h as i s ad d ed .)- 1 8 -

M r. Tri m m er’ s Ap ri l 3 0 , 2 0 1 4 , l et t er, t hat“ [y ] oud o n ’ tn eedt o d o an yth i n g el s e fo r
n o w. W e wi l l co nt acty o uag ai n wi th i n 6 0 d ay s t o l ety oukn o wwh atact i o n we are t ak i n g .” On l y

three d ay s l at er, o n J u n e 6 , 2 0 1 4 , th e ag en twro t e p et i t i o n ers ag ai n , d en y i n g the req u es t ed rel i ef, n o t o n t h e b as i s thatp et i t i on ers h adreq u es t ed i t in th e wro ng m an n er o r h adp ro vi d edi ns u ffi ci en ti n fo rm at i o n , b u to n t h e b as i s
o f cu rs o ry

an di nco m

p l et e l eg al an al y s i s th atfai l edt o t ak e i n t o acco u n t th e p ro v is i o n fo r h ard s hi p wai v ers u n d er s ect i o n 4 0 2 (c)(3 )(B). Res p o n d en tp o i n t s t o s ev eral M em o ran du m Op i ni o n s i n wh i ch th i s Co u rt d ecl i nedt o co n s id er eq u i t ab l e rel i ef fro m the 6 0 -d ay

ro l l o v er req u i rem en ti n ci rcu m s t an ces wh ere t h e t ax p ay er d i dn o tfi rs t req u es ta wai v er ad m i n i s trat i v el y fro m th e IRS u n d er s ect io n 4 08 (d )(3 )(I) (wh ich p ro v id es , fo r IRA d i st ri b u t i o n s , wai v er au th o ri ty

an al o g o u s t o th at u n d er s ect i o n 4 02 (c)(3 )(B)). See Dab ney v . Co m m i s s i o n er, T.C. M em o . 2 0 1 4 -1 0 8 ; Bo bro w v . Co m m i s s i o n er, T.C. M em o . 2 0 1 4 -2 1 ; Atk i n v . Co m

m is s i o n er, T.C. M em o . 2 00 8 -9 3 . Inn o n e o f t h es es cas es , h o wev er, i s there an y

i n d icat i o n th atth e t ax pay er ev er m ad e an y ad m i n i st rat i v e req u es tfo r a h ard s h i p wai v er, t h ro ug h th e p ri v at e l et t er ru l i n g p ro ces s , duri n g th e
ex am i n at i o n , o r o th erwi s e. In co n tras t , as ju s td is cu s s ed , M r. Tri m m er d idi n fact req u es tad m i n i s trat i v e rel ief fro m th e 6 0 -d ay

ro l l ov er req u i rem en tdu ri ng th e- 1 9 -

ex am i n at i o n , an dth e IRS co ns i d eredan dreject ed h i s req u es t i n p ro ces s i n g th e ch an ges th atare refl ect edi n t h e n o t i ce o f d efi ci en cy . Onb ri ef res p o nd en t as s ert s th atth e ag en t ’ s J un e 6 , 2 01 4 , l et t er was n o ta

“ fi n al d et erm i nat i o n ” b ecau s e i ti n v i t edp et i t i o n ers t o “ wri t e an dt el l u s wh y ” i f th ey d i s ag reedwi th i t s co n cl us i o n s . Bu tth i s was es s en t ial l y th e s am e i n v i tat i o n
co n tai n edi n th e No t ice CP2 0 0 0 , i s s u edDecem b er 1 6 , 2 01 3 , i n res p on s e t o wh i ch M r. Tri m m er du t i fu l ly

s en th i s Ap ri l 3 0 , 2 0 1 4, l et ter d es cri b i n g th e fact s an d ci rcu m s t an ces up o n wh i ch h e b as edh i s req u es t fo r rel i ef. Co n s i d eri n g th atM r. Tri m m er’ s l et t er h adres u l t edi n th e IRS’ s u m m ari l y d en y i n g h i s req u es t o n l eg al g ro u nd s th ats eem edt o ad m ito f n o p o ss i b i l i ty o f ad m i n i s trat i v e rel ief, wi th o u t
ev en ackno wl ed g in g the s p eci fi c fact s an dci rcu m st an ces s p el l edo u ti n M r. Tri m m er’ s l et t er, th e i n vi tat i o n fo r p et i t i o n ers t o res p o n dy et ag ai n i f t h ey d i s ag reeds tri k es u s as an em p ty g es tu re o r m ere b o i l erp l at e. Hav i n g co n s i d eredal l o f res p o n den t ’ s arg u m en t s , we h o l d th atres p o n d en t h ad th e au th o ri ty

t o co n s i d er M r. Tri m

m er’ s h ard s hi p req u es t du ri n g p et i ti o n ers ’
ex am i n at i o n , an dwe co n cl ud e t h atres p o n d en td i di n fact m ak e a fi n al d et erm i n at i o n t o d en y

th e h ard sh i p wai v er.- 2 0 -

D. J u d i ci al Rev i ew o f Hard s h i p W ai v er Den ial Th e t i m el y

fi l i n g o f a p et i t i o n i n res p o n s e t o a n o t i ce o f d efi ci en cy co n ferred juri s d i ct i o n o n thi s Co u rti n th i s p ro ceed i n g . See s ec. 6 2 1 3 (a). Nev ert h el es s , res p o n d en t as s ert s, wi th o u t m ean i ng fu l an al y s i s , th atp et i t i o ners can n o t

“p i gg y b ack ” o n th i s Co u rt ’ s d efi ci en cy juri s d i ct i o n t o o b t ai n rev i ew o f
res p o n d en t’ s d en i al o f t he wai v er. Th e o n l y au th o ri ty res p o n d en tci t es i n s up p o rt
o f t h i s as s ert i o n i s Bo u rek i s v . Co m m i ss i o n er, 1 1 0 T.C. 2 0 (1 9 9 8 ). Res p o n d en t ’ s rel i an ce o n Bo u rek is i s m i s pl aced
. Bo u rek i s ad dres s es th i s Co u rt ’ s juri s d i ct i o n t o rev i ew a d en i al o f a req u es t fo r ab at em en to f i n t eres t . Un d er s ect io n 6 4 0 4 (h )(1 ), th e ju ri s d ict i o n al p rereq u i s i t e fo r s u ch rev i ew i s a “ fi n al d et erm i n at i o n ” n o tt o ab at e i n t eres t . Bo u rek i s v . Co m m i s s i o n er, 1 1 0 T.C. at2 7 ; s ee Ru l e 2 8 0 . Bo u rek i s h el dthatth e n o ti ce o f d efi ci en cy

d i dn o tco n s t itu t e a fi n al d et erm i n at i o n n o tt o ab at e i n t eres t. Bo u rek i s
v . Co m m i s s i o n er, 1 1 0 T.C. at2 6 -2 7 . Co n s equ en t ly , th e Co u rtl ack edjuri s d i ct i o n t o co n si d er t h e t ax p ay er’ s i nt eres tab at em en tcl ai m . Id
. In co n tras t , p et i t i o n ers ’ cl ai m fo r rel i ef g o es t o th e m eri t s o f t h e d efi ci en cy d et erm i n at i o n an du n d er s ect i o n 6 2 1 3 (a) d o es n o t req u i re an y “ t ick et ” t o the Tax Co u rtap artfro m

th e n o ti ce o f d efi ci en cy . Iti s wel l es t ab l i s h edth atth i s Co u rt ’ s d efi ci en cy

juri s d i ct io n i n cl u d es rev iewi n g ad m in i s trat i v e d et erm in at i o n s th atare- 2 1 -

n eces s ary t o d et erm i n e t h e m eri t s o f d efi ci en cy d et erm i n at i o n s . See, e.g ., Cap i t o l Fed
. Sav . & Lo an As s ’ n v . Co m m is s i o n er, 9 6 T.C. 2 0 4, 2 1 4-2 1 5 (1 99 1 ) (h o l d i n g th atth e Co m

m i ss io n er’ s refu s al t o p ro ces s an ap p l i cat i o n fo r an acco u n t in g
m et h o d ch an g e u n d er s ect i o n 4 4 6 (b ) i s s ub j ectt o ju d i ci al rev i ew i n a d efi ci en cy p ro ceed in g ); M ai l m an v . Co m m i s s i o n er, 9 1 T.C. 1 0 7 9 , 1 08 3 (1 9 8 8 ) (h o l d in g th at th e Co m m i s s i o n er’ s d en i al o f a wai v er o f t h e ad di t i o n t o t ax u n d er fo rm er s ect i o n 6 6 6 1 i s s ub

jectt o ju d i ci al rev i ew i n a d efi ci en cy p ro ceed i n g ); Es t at e o f Gard n er v . Co m m i s s i o n er, 8 2 T.C. 9 89 , 1 0 0 0 (1 9 8 4) (h ol d i n g th atth e Co m m i s s i o ner’ s d en i al
o f a req u es tu n d er s ect i on 6 0 8 1(a) t o ex t en dthe t i m e fo r fi li n g an es t at e t ax retu rn i s s ub jectt o ju d i ci al rev i ew i n a d efi ci en cy p ro ceed i n g). Th ere i s a s tro n g p res u m

p t i o n t h atan act o f ad m i ni s trat i ve d i s cret i on i s
s ub jectt o ju d i ci al rev iew. Co rb al i s v . Co m m i s s io n er, 1 4 2 T.C. 4 6 , 5 6 (2 0 1 4 ) (h o l d i n g th atd en i al s o f i n t eres ts u sp en s i o n u n d er s ect io n 6 40 4 (h ) are s ub jectt o ju d i ci al rev i ew); M ai l m an v . Co m m i ss i on er, 9 1 T.C. at1 0 8 2 ; Es t at e o f Gard n er v . Co m m i s s i o n er, 8 2 T.C. at 9 9 4 ; s ee New Yo rkRaci n g As s ’ n v . NLRB, 7 0 8 F.2 d 4 6 , 5 1 (2 dCi r. 1 9 8 3) (“ [J ] u d ici al rev i ew i s th e ru l e, an dp recl u s io n * * * th e
ex cep t i o n [.] ” (ci t in g Barl ow v . Co l li n s, 3 9 7 U.S. 1 5 9 , 1 6 6 -6 7 (1 9 7 0))). “ Ag en cy act i on i s o nl y

ex em p tfro m ju d ici al rev i ew wh ere t he g o v ern i n g s t atut es ex p res s l y- 2 2 -

p recl u d e rev iew o r wh ere t he act i o n i s co m m i t tedt o ag en cy

d i s cret i o n b y

l aw.” M ai lm an v . Co m

m i s s i o n er, 9 1 T.C. at1 0 8 2
. 1 0 No th i n g i n s ect i o n 4 0 2 (c)(3 ) ex p res sl y p recl u d es ju d i ci al rev iew, n or d o es th e l eg i s l at i v e h is t o ry

rev eal an y

s u ch co n g res s i o n al i n t en t
. 1 1 To th e co n trary , b ecau s e th e d en ial o f a h ard s h i p wai v er can affect d irect l y th e ex i s t en ce an d
am ou n to f an y

as sert edd efi ci en cy --as i td o es i n th i s cas e--t h e p ro cedu res Co n g res s h as es tab l i s h ed fo r ju d i ci al rev iew o f t h e Co m m i s s io n er’ s d efi ci en cy d et erm i n at i o n s l o gi cal l y

co nt em p l at e rev i ew o f s u ch a d en i al as o n e el em en to f t h e d efi ci en cy

d et erm i n at i on . See Es t at e o f Gardn er v . Co m m i s s i o n er, 8 2 T.C. at9 9 6
.

1 0 M ai lm an v . Co m

m i s si o n er, 9 1 T.C. 1 0 7 9, 1 0 8 2 (1 9 88 ), m ak es i tcl ear t h at b y “ co m m it t edt o ag en cy

d i s cret i o n b y

l aw”, t h e Co u rtm ean s “ co m m i t t eds o l el y

t o ag en cy d i s cret i o n ”. Act io n i s co m m i t t eds o lel y

t o ag en cy

d i s cret io n o nl y

i n a “ n arro wcat eg ory o f ci rcu m s t an ces ”, i d . at 1 0 8 3 , wh i ch d o n o tex i s ti n t h i s cas e, as d i s cu s s edb el o w.

1 1 Th e co n feren ce co m

m it t ee rep o rtm erel y

s u m m ari zes s ecs . 4 0 2 (c)(3 )(B) an d 4 0 8 (d )(3 )(I) an dth en s t at es : Fo r ex am pl e, t h e Secret ary

m ay i s s u e g u i d an ce th ati n cl u d es o b ject i v e s t an dard s fo r a wai v er o f th e 6 0 -d ay ro l l o v er p eri o d , s u ch as wai v i n g th e ru le due t o m i l i t ary

s erv i ce i n a co m

batzo n e o r duri n g a Pres id en t i al l y

d ecl aredd i s as t er * * * , o r fo r a p eri oddu ri ng wh ich th e p art i ci pan th as recei v edp aym en ti n the fo rm o f a ch eck , b u th as n o t cas h edth e ch eck , o r fo r erro rs co m m i t tedb y a fi n an ci al i ns t i tu ti o n , o r i n cas es o f i n ab i l i ty

t o co m p l et e a ro l l o ver du e t o d eat h , d i s ab i l i ty , h o s p i t al i zat i on , i n carcerat i o n , res tri ct i o n s i m p o sedb y a fo rei gn co u n try , o r p o s t al erro r. [H.R. Co n f. Rep t . No . 1 0 7 -8 4 , at2 5 2-2 5 3 (2 0 0 1 ), 2 0 01 -3 C.B. 1 2 3 , 3 7 5 -3 7 6 .]- 2 3 -

“ To d et erm in e wh et h er an act i o n h as b een co m m i t t eds o l el y

t o ag en cy d i s cret i o n we h av e fo l l o w edthe s t an d ard s fo ll o wedi n o th er Fed eral co u rt s.” M ai lm an v . Co m

m i s s i o n er, 9 1 T.C. at1 0 8 2
. Co u rt s h av e refrai n edfro m rev i ewi n g
ex erci s e o f ad m i n is trat i ve d i scret i o n [o ] n l y i n cas es i n wh ich i tcan b e fo u n d t h atth e ex i s t en ce o f b ro ad d i s cret i o n ary

p o wer i s n o tap p ro p ri at e fo r ju d i ci al rev i ew, o r t h atth e ag en cy d et erm i n at i on i n vo l v es p ol i t i cal , eco no m i c, m i l i t ary , o r o th er m an ag eri al ch o i ces n ots u s cep t i b l e t o ju d i ci al rev iew, o r th atth e ag en cy d et erm i n at i on req u i res ex p eri en ce o r ex p ert i s e fo r wh i ch l eg al edu cat i on o r t h e l awy er’ s s k i ll s p ro v i d e n o p art i cu l ar co m p et en ce fo r res o lu t i o n an d fo r wh i ch th ere are n o as cert ai n ab l e s t an d ard s ag ai n s t wh i ch th e ex p ert i s e can b e m eas u red . [Id . at1 0 8 2 -1 08 3
. ] No n e o f t h es e ci rcu m s tan ces ex i s t s h ere. W e b el i ev e th atth ere are
as cert ai n ab l e s t an dard s o n wh ich t o b as e o u r rev i ew. W e m ay l o o kn o t o n l y

t o th e t erm s o f s ect i o n 4 0 2(c)(3 )(B) b u tal s o t o rel at edp ro v i s i o n s an dthe o v eral l l eg i s lat i v e p u rp o s e, as wel l as th e o b ject i v e fact o rs s eto uti n Rev . Pro c. 2 00 3 -1 6 , s up ra, fo r ev al u at in g wh et h er a h ard s hi p wai v er s h o u l db e g ran t ed . Th e rev i ew d o es no ti n v o l v e p o l it i cal , eco n o m i c, m i l i t ary , o r o th er m an ag eri al ch o i ces n o t
s u s cep t i b l e t o ju di ci al rev i ew. See Es t at e o f Gard n er v . Co m m i s s i o n er, 8 2 T.C. at 9 9 7 . An d n o th i n g s u gg es t s th atth e Co m m i ss i o n er’ s ex erci s e o f d i s cret io n t o g ran t
a ro l l ov er wai ver i n v o l v es an y ag en cy ex pert i s e b ey on dthe co m p et en ce o f t h e
co u rt s . See i d . at9 98 . No r d o we th i n k th atju d ici al rev i ew o f t he Co m m i ss i o n er’ s- 2 4 -

d en ial o f a h ard sh i p wai v er fro m th e ro l lo v er req u i rem en twi l l i m pai r t h e Co m m i s s i o n er’ s ab i l i ty

t o d i s ch arg e co n g res s i o n al l y m an dat eddu t i es . As s t at edi n Es t at e o f Gard n er: “ Ou r rev i ew i s p arto f an o v eral l red et erm i n at i o n p ro ceed i n g
o ccu rri n g o n l y

aft er res p o n d en th as co m p let ed h i s au d i t an d ad m i n i st rat i v e rev i ew
an d h as i s s u edh i s s t atu t o ry n o t i ce o f d efi ci en cy

t o th e t ax p ay er. Su ch rev i ew i s n o
m o re i n tru s i v e t h ano u r rev iew o f res p o n d en t ’ s ex erci s e o f d i scret i o n u n d er o th er p ro v is i o n s o f t h e Co d e.” Id
. Al th ou g h the Co u rt ’ s juri s d i ct i o n i s carefu l l y ci rcu m s cri bed , “ o nce o u r d efi ci en cy

juri s d i ct io n h as been p ro p erl y i nv o k ed , we wi l l ex am i n e d e n o v o th e
m eri t s o f res p o n d en t ’ s d efi ci en cy d et erm i nat i on s ”, i n cl ud i n g h i s ex erci s e o f d i s cret i o n u n d er s ect i o n 4 0 2 (c)(3 )(B), i n as m u ch as th e “ al l eg edd efi ci en cy * * * tu rn [s ] upo n res po n d en t ’ s d i s cret i o naryact i o n s.” Id . at 9 9 9
. Fo r t h es e reas on s , we h o l dth atwe h av e ju ri s d i ct i o n t o rev i ew res p o n d en t ’ s d en ial o f a h ard sh i p wai v er t o p et i ti o n ers . W e n o t e th at rev i ewi n g res po n den t ’ s
ex erci s e o f d i s cret i o n i s n o tco n traryt o o u r g en eral p o li cy o f n o tl o o k i n g b eh i n da
s t atu to ry n o t i ce o f d efi ci en cy

t o ex am i n e res p on d en t ’ s m o t i ves o r co n du cti n d et erm i n i n g th atd efi ci en cy . See i d
. at1 0 0 0 (ci ti n g Grah am v . Co m m i s s i o n er, 8 2 T.C. 2 9 9 , 3 0 8 -3 09 (1 9 8 4) (an dcas es ci t ed th ereat )). Ou r rev iew o f res p o n d en t ’ s
ex erci s e o f d i s cret i o n d o es n otex am i n e t he m et h o do r p ro cedu re b y wh i ch- 2 5 -

res p o n d en t m ad e h i s ad m in i s trat i v e d et erm i n at i o n o f a d efi ci en cy . Rat h er, o u r
rev i ew o f res p on d en t’ s d en i al o f a h ard sh i p wai v er i n th i s cas e i s n eces s ary fo r u s t o d et erm i n e t h e m eri t s o f res p o n d en t ’ s s ub s t an t iv e d et erm in at io n o f a d efi ci en cy . W e co ncl u d e t h at th e ap p ro p ri at e s t an dardo f rev iew i s wh et h er res p o n d en t h as ab us edh is d i s cret i o n ary au th o ri ty b y ex erci s i n g i t arb i trari l y , cap ri ci ou s l y , o r wi th o u ts o u n d b as i s i n l aw o r fact . See M ai l m an v . Co m m i s s io n er, 9 1 T.C. at 1 0 8 4 (“ Th e s t an d ard o f rev i ew m o s tap p ro p ri at e i n the cas e o f a fai l ure t o g ran ta wai v er i s * * * wh et h er res po n d en tab u sedh is d is cret i o n .”); Es t at e o f Gard n er v . Co m m i s s i o n er, 8 2 T.C. at 1 0 0 0; s ee al s o Es t at e o f Ro s k i v . Co m m i s s i o ner, 1 2 8 T.C. 1 1 3 , 1 2 7 (2 0 0 7 ). In Es t at e o f Gardn er v . Co m m i s s i o n er, 8 2 T.C. at1 0 0 0, thi s Co urto b s erv ed th at“ Ani n i t i al au t om at i c d en i al wi th o u tco ns i d eri n g the fact s an dci rcu m st an ces
* * * wo ul dco n s t i tu t e t h e v ery es s en ce o f arb i trary ad m in i s trat i ve act i on an dan ab u se o f t h e d i s cret i o n g ran t ed .” Un d er t hi s s t an d ard , we h av e l i t tl e t ro ubl e
co n cl u d in g th atth e i n i t ial ad m i n i s trat i v e d en i al o f M r. Tri m m er’ s req u es twas an ab u se o f d i s cret i o n . Ind en y i n g M r. Tri m m er’ s req u es tfo r a h ard s h ip wai ver,
res p o n d en t’ s ag en t , p ro ceed in g o n wh atap p ears t o h av e b een an i n co m p l et e
u n d ers t an d i n g o f t h e p ert i n en ts t atu t o ry p ro v i s io n s, fai l edt o ad dres s o r ev en- 2 6 -

ack n owl ed ge an y

o f t h e fact s an dci rcu m s tan ces M r. Tri m m er s etfo rth i n h i s l et t er. 1 2 In h i s an s w eri ng b ri ef res p o n d en tco n t en d s th at th e Co u rtcan n o tfi ndan y ab u se o f d i s cret i o n b ecau s e “ n o ad m i n i s trat i v e d et erm i n at i o n was m ad e, an d th erefo re n o ab u s e o f d i s cret i o n can b e d et erm i n ed .” As p rev i ou s ly d i scu s s ed , h o wev er, we h av e fo un dthatres p o nd en t ’ s ag en tm ad e a d et erm in at i o n i n h er J u n e 6 , 2 01 4 , l et t er, t o d en y

M r. Tri m m er’ s req u es tfo r a h ard s h i p wai v er. Res p o n d en t al s o co n t en d s th atth e Co u rtcan n o tfi n dan y ab u s e o f d i s cret i o n b ecau s e, ap art fro m M r. Tri m m er’ s l et t er t o th e o p erat i o n s m an ag er, t h ere “ was n o d o cu m en t at i o n
o r i n fo rm at i o n s ub m i t t edt o res p o n d en tt o s ub s t an t i at e M r. Tri m m er’ s cl ai m

th at h e h add ep res s i o n du ri n g t h e rel ev an tp eri o d s .” As p rev i o u s l y d i s cu s sed , h o wev er, t h e reco rdi n d i cat es th atth e o p erat i o ns m an ag er n ev er req u es tedan y
s u ch do cu m en t at i o n o r i n fo rm at i o n . Inth i s p ro ceed in g p et it i o n ers h av e p res en t ed cred i b l e ev i d en ce--i n cl u di n g ex p ertt es t i m o n y --th atM r. Tri m m er d i di n fact s u ffer
m ajo r d ep res s i v e d i s ord er du ri n g th e rel ev an t p eri o d . Res p o n d en tco m p lai n s th at th e ex p ertrep o rtwas n o to ffered du ri n g th e ex am in at io n . Bu t ag ai n , i twas n o t req u es t eddu ri n g th e ex am i n at io n , an dp et i t i o ners were p ro vi d ed n o o pp o rtu n i t y t o

1 2 Si n ce we fi n d res p on den t ’ s d et erm i nat i o n t o b e an ab u s e o f d i s cret i o n , an d i n the ab s en ce o f an y reas on edd et erm i n at i o n b y res po n d en t , we ad dres s t h e m eri t s o f p et i ti o n ers ’ req u es t d e n o v o . See i n fra p artII.F.- 2 7 -

o ffer s u ch ev i d en ce du ri n g th e ex am i n at i o n. Th erefo re, as p arto f o u r ju d i ci al
rev i ew t h e ex p ertrep o rti s p ro perl y co n s id eredi n th i s p ro ceed i n g i f i ti s ad m i s s i b l e. Th i s b ri n g s u s t o res po n d en t ’ s m o t i o n i n l i m i ne. E. Res p o nd en t ’ s M o t i o n i n Li m i n e To Ex cl u d e Pet it i on ers ’ Ex p ert Tes t im o ny Th e d ay b efo re t ri al res p o n d en tfi l eda m o t i o n i n l i m i n e, o b ject in g t o th e ad m i s s i o n o f t h e ex p ertt es ti m on y an drep o rto f Ki u (Kat h y ) Ho , wh i ch p et i t i o n ers
o ffered attri al
. M s . Ho i s a l i cen s edm as t er s o ci al wo rk er (LM SW ) i n New Yo rk , a l i cen s ed cl i n i cal s o ci al wo rk er (LCSW ) i n Cal i fo rn i a, an d a cl i n i cal p ro fes so r o f l aw an d a
s up erv i s i n g s o ci al wo rk er atth e Fo rd h am Un i v ers i ty

Sch o o l o f Law. Sh e o p i n ed th atM r. Tri m

m er s uffered fro m

m ajo r d ep res s i v e d is ord er du ri n g p o rt i o ns o f 2 0 1 1
an d 2 0 1 2 . Pet i t i o n ers o fferedM s . Ho ’ s t es t i m o n y an drep o rtt o s up p ortth ei r arg u m en tth atM r. Tri m

m er i s en t i tl edt o a wai ver o f t h e 6 0 -d ay ro l l o v er req u i rem en tu n d er s ect i o n 4 0 2 (c)(3 )(B). Attri al M s . Ho ’ s rep o rtwas m ark edas
an ex hi b i tan d h er t es t im o n y was h eards o l el y

as an o ffer o f p ro o f; th e Co u rt d eferred ru l i ng o n res po nd en t ’ s m o t i o n i n l i m i n e t o al l o w th e p art i es an
o p p o rtu ni ty

t o fu rt h er ad dres s th e m at t er i n th ei r p os t tri al b ri efs . W e n ow ex am i n e- 2 8 -

res p o n d en t’ s v ari o u s o bject i o n s an dd et erm i n e wh et her t hi s t es t i m o n y i s ad m i s s i b l e. W e co n cl ud e t h ati ti s ad m i s s i b l e, fo r t h e reas on s d i s cu s s edb el o w.

1
. Ad m i ss ib i l i ty W e co ndu ctth i s p ro ceed i n g i n acco rd an ce wi th the Fed eral Ru l es o f Ev i d en ce. See In t eri m

Ru l e 1 4 3 (a), Un i t ed St at es Tax Co u rtPres s Rel eas e 4 (M ar. 2 8 , 2 0 1 6 ), www.u s t ax co u rt .g o v/p res s / 0 3 2 8 16 .p d f. 1 3 Th e p ro p o nen th as th e b u rd en
o f s h o w i n g th at ex p ertt es ti m o n y m eet s th e req u i rem en t s o f ru l e 7 0 2 o f t h e Fed eral Ru l es o f Ev i d en ce. 1 4 Inre Pfi zer In c. Sec. Li t i g . , 8 1 9 F.3 d 6 4 2 , 6 5 8 (2 dCi r.

1 3 Sec. 7 4 53 was am en d edo n Decem b er 1 8, 2 0 1 5 , t o p ro vi d e: “ Ex cep ti n th e cas e o f p ro ceed i n g s co n du ct ed u n d er s ect i o n 7 4 3 6 (c) o r 7 4 6 3, the p ro ceed i n g s o f th e Tax Co u rt an di t s d i v i s i o n s s h al l b e co ndu ct ed* * * i n acco rd an ce wi th th e Fed eral Ru l es o f Ev i d en ce.” As a res u l to f t h i s am en dm en tth e Co u rtfo ll o ws th e Fed eral Ru l es o f Ev i d en ce as ap p li edb y the U.S. Co u rto f Ap p eal s t o wh i ch a cas e i s ap p eal ab l e. Bat t atv . Co m m is s i o n er, 1 4 8 T.C. _

_ _ , _

_ _ (s l ip o p . at2 0 -2 1) (Feb
. 2 , 2 01 7 ). Sec. 7 45 3 as am en d edi s effect i v e fo r “ pro ceed i n gs co m m en cedaft er t h e d at e o f t h e en act m en to f t h i s Actan d , t o the ex t en tth ati ti s ju s t an d p ract i cab l e, t o al l p ro ceed i n g s p en di n g o n s u ch d at e.” Co n s o l i d at edAp p ro p ri at i on s Act , 2 0 1 6 , Pub . L. No . 1 1 4 -1 1 3 , d i v. Q, s ec. 4 2 5 (b ), 1 2 9 St at . at3 1 2 5 . Iti s ju s tan d p ract i cab l e t o ap p l y

th e Fed eral Ru l es o f Ev i d en ce i n th i s cas e, wh i ch was p en d in g o n Decem

b er 1 8 , 2 0 1 5 , an dtri edaft er th atd at e. 1 4 Fed . R. Ev i d. 7 0 2 p ro v i d es : A wi tn es s wh o i s qu al i fi edas an ex p ert b y kn o wl ed g e, s k i ll , ex p eri en ce, t rai n i n g , o r edu cat i o n m ay t es t i fy i n th e fo rm

o f an o p i n i o n o r o th erwi s e i f: (a) t h e ex p ert ’ s s ci en t i fi c, t ech n i cal , o r o th er s p eci al i zedkn owl ed ge (co n ti n u ed ...)- 2 9 -

2 0 1 6 ). Th i s Co u rth as a “ g at ek eep i n g ” du ty , Daub ertv . M errel l Do w Ph arm s ., In c., 5 0 9 U.S. 5 7 9 , 5 9 7 (1 9 9 3 ), req u i ri ng u s t o d et erm i n e t h atan ex p ert ’ s t es t i m o ny “b o th res t s o n a rel i ab l e fo u n d at i on an di s rel ev an tt o the t as kath an d” b efo re i t m ay

b e ad m i t t ed , i d
. Th e Co u rth as b ro add i s cret io n i n carry i ng o u tth i s g at ek eep i n g ro l e, s ee In re Pfi zer, 8 1 9 F.3 dat6 5 8 ; Neo n at o l o gy As s o cs ., P.A. v
. Co m m i s s i o n er, 1 1 5 T.C. 4 3 , 8 5 (2 0 0 0 ), aff’ d , 2 9 9 F.3 d 2 21 (3 d Ci r. 2 00 2 ), k eep in g i n m i n dth e “ w el l-accep t ed p ri n ci p le t hat[r] u l e 7 0 2 em b o di es a l i b eral
s t an d ardo f ad m i s s i b i l i ty

fo r ex p erto p i ni o n s ”, Ni m el y v . Ci ty o f New Yo rk , 4 1 4 F.3 d3 8 1 , 3 9 5 (2 dCi r. 2 0 05 ).

a. Rel ev an ce Ru l e 7 0 2(a) o f t h e Fed eral Ru l es o f Ev i d en ce req u i res th at the “ ex p ert ’ s
s ci en t i fi c, t ech n i cal , o r o th er s p eci al i zedkn owl ed g e wi l l h el p th e t ri er o f fact t o
u n d ers t an dth e ev i d en ce o r t o d et erm i n e a facti n i s s ue”. Bu tth e Suprem e Co u rt

1 4 (...co n t i nu ed ) wi l l h el p th e t ri er o f factt o u n d ers t an dth e ev i d en ce o r t o d et erm i n e a fact i n i ss ue; (b ) t h e t es t i m o n y

i s b as edo n s u ffi ci en tfact s o r d at a; (c) t h e t es t i m o n y

i s th e p ro du cto f rel i ab l e p ri n ci p l es an dm et h od s ; an d (d ) t h e ex p erth as rel i ab l y ap p l i edth e p ri n ci p l es an dm eth o d s t o th e fact s o f t h e cas e.- 3 0 -

h as ex pl ai n edth at“ [t ] hi s co n d i t i o n g o es p ri m ari l y t o rel ev an ce”. Daub ert , 5 0 9 U.S. at5 9 1 . Co urt s h av e t h erefo re ap p l i edth e p ri nci p l es o f ru l e 4 0 1 o f t h e Fed eral Ru l es o f Ev i d en ce t o d et erm i n e wh et h er ex p ertt es t i m o ny i s rel ev an tt o th e t as kat h an d an dth ereb y

h el p fu l . See, e.g ., Am org i an o s v . Nat ’ l R.R. Pas s en g er Co rp ., 3 0 3 F.3 d2 56 , 2 6 5 (2 dCi r. 2 0 0 2 ). Ev i den ce i s rel ev an ti f “ i th as an y t en d en cy t o m ak e a fact m o re o r l es s p ro b ab le t h an i t wo u l db e wi th o u tth e
ev i d en ce; an dth e fact i s o f co n s equ en ce i n d et erm i n i n g th e act i o n .” Fed . R. Ev i d
. 4 0 1
. On e d i s p u t edi s su e i s wh et h er M r. Tri m m er was s u fferi ng fro m

d ep res s i o n du ri n g th e rel ev an t p eri o d . M s . Ho ’ s t es t i m o n y u n do ubt ed l y

t en d s t o m ak e t h at fact m o re p ro b ab l e: Her t es t im o n y i s th at , o n th e b as i s o f h er ex t en s i v e ex peri en ce
an d edu cat i o n , M r. Tri m

m er’ s s ym

p t o m s --as rep o rt edb y

p et i t i o ners an dth ei r
s o n --are co n si s t en twi th a d i ag n o s i s o f d ep res si o n .

b
. Qu al ifi cat i o n o f t h e Ex pert W i tn es s Hav i n g fo u n dM s . Ho ’ s t es t i m o n y rel ev an t, we tu rnt o th e req u i rem en to f
ru l e 7 0 2 o f t he Fed eral Ru l es o f Ev i d en ce t h atthe p ro p o s edex p ertb e qu al i fi edb y kn o wl ed g e, s k i l l , ex p eri en ce, t rai n i n g , o r edu cat i o n. M s . Ho i s a can di d at e fo r a d oct o rat e i n s o ci al wo rk atNew Yo rk Un i vers it y . Sh e h as a m as t er’ s d eg ree i n s o ci al wo rk fro m th e Un i v ers i ty o f- 3 1 -

So u thern Cal i fo rn i a. Sh e h o l d s l i cen s es as an LCSWi n Cal i fo rn i a an das an LM SWi n New Yo rk
. 1 5 Sh e i s al s o a cl i ni cal p ro fes so r o f l aw an ds uperv i s i n g
s o ci al wo rk er atth e Fo rd h am Un i v ers i ty

Sch o o l o f Law. Befo re h er t im e at Fo rd ham an dNew Yo rk Un i v ers i ty , M s . Ho wo rk edi n a wi d e v ari et y o f cl i n i cal
s o ci al wo rkp o s i t i o ns i n Cal i fo rn ia, wh ere s h e p art i ci p at ed reg u l arl y i n as s es s i n g
an d treat i n g p at ien t s . Aft er carefu l co n s i d erat i o n o f h er ex p eri en ce, educat i o n , an dl i cen s es , we
co n cl u d e th atM s . Ho i s qu al ifi edt o o ffer ex p ertt es t i m o n y o n M r. Tri m

m er’ s
m en t al h eal th h i s to ry . 1 6

1 5 W e n o te t h at “ [l ] i cen s u re i n th e d i s ci p l i n e o r s p eci al i ty wh i ch i s t h e s ub

ject o f ex p erto pi ni o n i s n o ta req u i rem en t u nd er t h e Fed eral Ru l es o f Ev i d en ce”. Do e v . Cu t t er Bi o l o g i cal , In c., 9 7 1 F.2 d3 7 5 , 3 8 5 n .1 1 (9 th Ci r. 1 9 9 2 ) (ci t i n g Geo ph y s i cal Sy s . Co rp . v . Sei s m o g rap h Serv . Co rp ., 7 3 8 F. Sup p . 3 4 8 (C.D. Cal
. 1 9 9 0 )). M s . Ho ’ s l i cen s e as an LCSWi n Cal i fo rn i a, h er l acko f a l i cen s e as an LCSWi n New Yo rk , an dh er l i cen s e as an LM SWi n New Yo rk th erefo re d o n o t n eces s ari l y

res o lv e t he i s s u es o f h er q ual i fi cat i o n an d h el p fu l n es s as an ex p ert wi tn es s , th ou g h h er cert i fi cat io n s i n fo rm o u r d et erm i nat i o n . 1 6 M o reo ver, wh il e St at e p ract i ce i s n ot b i n d i n g o n th is Co u rto n t h i s i s s u e, we n o t e t h atCal i fo rn i a co u rt s h av e ad m it t edex p ertt es t im o n y o f Cal i fo rn i a LCSW s o n p s y ch o lo gi cal i s s u es . See, e.g ., Peo p l e v . Gad l i n, 7 8 Cal . Ap p. 4 th 5 87 (Ct . Ap p . 2 0 0 0 ). W e are m i n d fu l th ato n at l eas t o n e o ccas i o n a New Yo rktri al co u rtd i s al l o wedex p ertt es ti m on y fro m an LM SW . See Fi v e Bo ro Ps y ch o l o g i cal Serv s . v . GEICO In s . Co ., 9 2 9 N.Y.S.2 d 1 99 , 2 01 1 W L 1 87 9 0 5 3 (Ci v . Ct . 2 0 1 1 ). Bu t th atco u rt --aft er n o t i n g th at“ th e l acko f a m ed i cal l i cen s es [s i c] d o es n o t , i n an d o f i t s el f, d i s qu al i fy a wi tn es s fro m t es t i fy in g as an ex pert o n a m ed i cal qu es ti o n ”--d eci d ed th at th e p u t at i v e ex p ertd i d“ no tp os s es s th e co m b i n at io n o f (co n ti n u ed ...)- 3 2 - c. Rel i ab i l i ty Fi n al l y , we co n s i d er wh eth er M s . Ho ’ s t es t i m o n y i s rel i ab l e. Ind et erm i n i n g wh et h er ex p ertt es t im o n y i s rel i ab l e, o u r i n qu i ry

i s fl ex i bl e, an d o ur fo cu s “ m u st b e s o lel y o n p ri nci p l es an d m et h o d o l o g y , n o t o n t h e co n cl u s i o ns th atth ey g en erat e.” Daubert , 5 09 U.S. at5 9 4 -5 9 5. In ad d i t i on t o fact o rs rel at in g t o rel i ab i l i ty en u m erat ed i n ru l e 7 0 2 o f t h e Fed eral Ru l es o f Ev i d en ce, t h e Sup rem e Co u rth as i d en t i fi edo th er fact o rs we m ay co n s i d er b ut h as n o t“ s eto u t a d efi n i t i v e ch eck l i s to r t es t ”. 1 7 Daub ert , 5 0 9 U.S. at5 9 3 . “ [T] h e t y p es o f fact o rs th atare ap p ro p ri at e t o co n s i d er wi l l d ep en dupo n the p art i cu l ar ci rcu m s t an ces o f t he p art i cu l ar cas e ati s s u e”. In re Pfi zer, 8 1 9 F.3 dat 6 58 (i n t ern al quo t at i o n m ark s

1 6 (...co n t i nu ed ) l o n g o bs erv at i on , real ex p eri en ce o r s u ffi ci en t edu cat i o n o r t rai n i n g t o b e qu al i fi ed as an ex p erto n p s y ch o l og i cal tes t i n g .” Id ., 2 0 1 1 W L 1 8 7 9 0 5 3 , at* 4 . Th e p u t at i v e ex p erti n Fi v e Bo ro h adn o tg iv en an y p s y ch o l o g ical t es t s o r co ndu ct ed face-t o -face p s y ch o l o g i cal i n t erv i ews fo r at l eas tth e p ri o r 1 0 y ears . Id . Gi v en M s . Ho ’ s l i cen s e as an LCSWi n Cal i fo rn ia, h er wo rki n Cal ifo rn i a i n a cl i n i cal s et t i n g , an d h er edu cat io n al b ack g ro u n d , th e p res en tcas e i s eas il y d is t i n g ui s h ab l e fro m Fi v e Bo ro . 1 7 Th e fact o rs i d en ti fi edb y th e Suprem e Co u rtare: (1 ) wh et h er a t heo ry o r t ech n i qu e “ can b e (an dh as b een ) t es t ed ”; (2 ) “ wh ether t h e t h eo ry o r t ech n i qu e h as b een sub ject edt o p eer rev i ew an dp ub l i cat io n ”; (3 ) a t ech n i qu e’ s “ kn own o r p o t en t i al rat e o f erro r,” an d“ th e ex i s t en ce an dm ai n t en an ce o f s t an dard s co n tro l l in g th e t ech n i qu e’ s o p erat i on ”; an d(4 ) wh et her a p art i cu lar t ech n iqu e o r th eo ry h as ach i ev ed“ g en eral accep t an ce” i n th e “ rel ev an t s ci en t i fi c co m m u n i ty ”. Daubert v . M errel l Do w Ph arm s ., In c., 5 0 9 U.S. 5 7 9 , 5 9 3-5 9 4 (1 9 93 ); s ee Am o rg i an o s v . Nat ’ l R.R. Pas s en g er Co rp ., 3 0 3 F.3 d2 5 6 , 2 6 6 (2 dCi r. 2 0 0 2 ).- 3 3 -

an d b rack et s o m i t t ed ) (qu ot i n g Ku m h o Ti re Co . v . Carm i ch ael , 5 2 6 U.S. 1 3 7 , 1 5 0 (1 9 9 9)). Th e i n qui ry “ wi l l n eces s ari l y v ary fro m cas e t o cas e”. Am o rg i an os , 3 0 3 F.3 dat 2 66
. Es s en t i al l y , M s . Ho ’ s t es t i m o n y co ns i s t s o f ap p l i cat io n o f d efi n i t i o n s an d cat eg o ri es --fo u n di n th e Di ag n os t i c an dSt at i s ti cal M an u al o f M en t al Di s o rd ers (5 th ed . 2 0 1 3) (DSM -5 )--t o the d at a s h e g at h eredfro m M r. Tri m m er an d h is fam i l y . 1 8 Un d er ru l e 2 0 1 o f t h e Fed eral Ru l es o f Ev i d en ce t h i s Co u rtm ay t ak e ju d i ci al n o t i ce o f a factth ati s n o ts ub jectt o reas o n ab l e d i s p ut e i f i ti s g en eral l y kn o wn wi th i n o u r t erri t o ri al juri s d i ct i o n o r can b e accu rat el y an dread i l y d et erm i n edfro m

s o u rces wh o s e accu racycan no t reas o n ab l y b e qu es t i on ed . W e t ak e ju d i ci al n o t ice t hatth e i n fo rm at i o n co n t ai n edi n t h e DSM -5 thatrel at es t o th i s
cas e, an dth e t ech ni qu es o f d et erm i n i n g wh ich d efi n i t i o n s an dcat eg o ri es ap p l y t o

1 8 Res p o nd en to b

ject s th at , b ecau s e t h e Di ag no s ti c an dSt at i st i cal M an u al o f M en t al Di s o rd ers (5 th ed . 2 0 1 3 ) (DSM -5 ) was n o t at t ach ed t o the ex p ertrep o rt , i t fai l edt o co m

p l y wi th Ru l e 1 43 (g )(1 )(B), wh i ch req ui res th atan ex p ertrep ort co n tai n “ th e fact s o r d at a co n s i d eredb y th e wi tn es s ”. W e o v erru l e res p o n d en t ’ s o b ject i on fo r s ev eral reas on s . Fi rs t, the DSM -5 i s n ot“ fact s o r d at a” as co n tem p l at edb y Ru l e 1 4 3 (g )(1 )(B). Rat her, t h e DSM -5 i s a referen ce m anu al p ub l i s h edb y

th e Am eri can Ps y ch i at ri c As s o ci at i o n thatd efi n es an dcl as s i fi es m en t al d i s o rd ers . Al so , p et it i o n ers ’ co u ns el p ro v i d edco p i es o f t h e rel ev an t s ect i on s o f t h e DSM -5 up o n res p o n d en t ’ s req u es t . Fi n al l y , we t ak e ju d i ci al n o t i ce o f t h e co n t en t s o f t he DSM -5
.- 3 4 -

a p art icu l ar p ers o n , are wi d el y accep t ed i n th e s ci en t i fi c co m m u n i ty , h av e b een
s ub ject edt o p eer rev i ew an dp ub l i cat i o n , an dare s ub jectt o p ro fes s io n al
s t an d ard s . 1 9 To b e cl ear, we are n o tt ak i ng ju d i ci al n o ti ce o f t h e rel i ab i l i ty o f t h e p ri n ci p l es an d m et h o d s t h em s el v es ; rat h er, we t ak e ju d i ci al n o t i ce o f t h ei r wi d e accep t an ce an dth e ex is t en ce o f p eer rev iew an dp ro fes s i o n al s t an d ard s. Onth e b as i s o f t h es e ju d i ci al l y

n ot i cedfact s , we co n cl u d e t hatth e p ri n ci p l es an dm et h o d s
are s u ffi ci en tl y

rel i ab l e u nd er ru l e 7 0 2 o f t he Fed eral Ru l es o f Ev i d en ce. To p rep are h er t es t i m o n y , M s . Ho d i rect edh er as si s t an tt o i n t erv iew p et i t i o n ers an dth ei r s o n an d t o res earch v ari o u s i ss ues . M s. Ho al so i n t erv i ewed M r. Tri m m er p ers o n al l y

t o “ g ath er m o re d et ai l an dt o g etcl ari fy i n g i n fo rm at i o n ab o uth i s h i s t o ry ”. M s. Ho co ns i d eredv ari o u s p o s s i b l e ex p lan at i o n s fo r t h e
s ym p to m s d es cri b edb y

p et it i o n ers an d thei r s o n . M s . Ho ’ s as s i s t an tp rep areda fi rs tdrafto f t h e ex p ertrep o rt , wh i ch th en wen tth ro u g h m u lt i pl e d raft s . Up o n
rev i ew o f M s . Ho ’ s cred i b l e t es t i m o n y , we are s at i s fi edth atM s . Ho p ro v i d ed carefu l s up erv is i o n o f h er as si s t an t ’ s act i v i t i es . Iti s cl ear t h at M s . Ho t o oks t ep s t o v eri fy th e accu racyo f t h e d at a t hatwas g at h eredan dact i vel y p art i ci p at edi n

1 9 In O’ Do n nab h ai n v . Co m m is s i o n er, 1 34 T.C. 3 4 , 6 0 (2 0 10 ), fo r ex am p l e, we n o t edth atal l th ree ex pert s wh o t es t i fi edag reedth atth e fo u rt h ed it i on o f t h e DSM (s peci fi cal l y , th e 2 0 0 0 t ex trev i s io n ) was “ th e p ri m ary d i ag n os t i c t o o l o f Am eri can p s y ch i at ry ”. Th e p o rt i o n s o f t h e DSM -5 u sedb y M s . Ho are s ub s t an t i al l y

i den t i cal t o th e DSM -4
.- 3 5 -

draft in g th e rep o rt ; an dn o th in g s u g g es t s th ath er ap p ro ach d ev i at ed fro m th e p ri n ci p l es an d m et h o d s referen cedab ov e. W e t h erefo re fi n dth atM s . Ho rel i ab l y ap p li edth e afo rem en ti o n edp ri n ci p l es an dm et ho d s t o th e fact s an dd at a. M s . Ho d idn o t o b s erv e M r. Tri m m er’ s s ym

p t o m s wh i l e t h ey

were
o ccu rri n g ; s he an dh er as s i s t an ti n t erv i ewedp et i t i o ners an dth ei r s o n l o n g aft er t h e
s ym p to m s h ads ub s i d ed
. Res p o n d en targ u es th atM s . Ho ’ s ret ro s p ect i v e
as s es s m en to f M r. Tri m

m er’ s co n d i t i o n i s u n rel iab l e b ecau s e s h e was n otab l e t o
co n tem p o ran eo u s ly

o b serv e h i s s ym

p t om s . As p et i t io n ers o b s erv e, h o w ev er, ev en i f M s . Ho h adas s es s edh i s co n d i t i o n atth e t i m e M r. Tri m m er was ex p eri en ci n g
s ym p to m s , m o s to r al l o f h is s ym p t o m s wo u l d h av e b een s el f-rep o rt ed
. Fu rt h erm o re, as s h e g ath eredd at a an dd ev el o p edh er o p i n io n , M s. Ho co n s i d ered th e p o ss i b l e effect s o f i n accu rat e m em o ry o r h i n d s i g h t b i as , an ds h e al s o
co n si d ered(an dreject ed ) t h e p o s s i b i l i ty thatM r. Tri m m er m i gh t b e fei g n i n g o r
ex ag gerat i ng s y

m p t o m s . Fi n al l y , p et i t io n ers an d th ei r s o n were t h e s ou rces fo r M s . Ho ’ s t es t i m o ny , an dal l th ree t es t i fi ed . W e were t h erefo re ab l e t o d i rect l y ju d g e t h e cred i b i li ty

o f th e s o u rces o f M s . Ho ’ s t es t i m o ny , an dwe fo u ndal l th ree t o b e h ig h l y

cred i b le. M o reo v er, th ei r cred i b le t es t i m o n y co rro bo rat es th e fact s
an d d at a o u t l in edi n M s. Ho ’ s t es t i m o n y . Fo r al l th es e reas o n s , aft er a t h o ro u g h- 3 6 -

rev i ew o f th e reco rd , we fi n dth atM s . Ho ’ s t es ti m o ny was b as ed o n s u ffi ci en t fact s an dd at a. Onth e b as is o f th e fo reg o i n g an al y s i s , we fi n d t h atM s . Ho ’ s t es t i m o n y
m eet s th e Daubert s t an d ardo f rel i ab i l i ty , an dp et i ti o n ers h av e m etth e b urd en th at
ru l e 7 0 2 o f t he Fed eral Ru l es o f Ev i d en ce p l aces o n a p ro p o n en to f ex p ert
ev i d en ce. W e n o w turn t o res p o n den t ’ s o bject i o n s .

2
. St at e Law Co n cern s Res p o n d en tas sert s th atM s . Ho ’ s rep o rt“ refl ect s a v i o l at i on o f New Yo rk St at e l aw, an ds h o u l dn o tb e en t ert ai n ed b y th e Co u rt .” 2 0 Fo r t h e reas on s
ex p lai n edb el o w , we d i s ag ree. Fi rs t , s o m e b ack g ro u n d. As p arto f a b ro ad er rewo rk in g o f m en t al h eal t h
s erv i ces l aw, i n 2 0 0 2 New Yo rken act eda n ew l icen s i n g reg im e fo r t h e p ract i ce o f
s o ci al wo rk ; i t b ecam e effect i v e i n 2 0 0 4 . N.Y. Ed u c. Law s ecs . 7 7 0 0 -7 7 1 3 (M cKi n n ey

2 0 1 6 ). See g en eral l y

Peo p l e v . R.R., 8 0 7 N.Y.S.2 d5 16 (Sup . Ct
. 2 0 0 5 ). New Yo rkl aw l i cen s es two l ev el s o f s oci al wo rk : th e p ract i ce o f l i cen s ed

2 0 Res p o nd en tap p ears t o i n v o k e t h e p ri n ci p l e o f co m i ty , th ati s , th e Fed eral Go v ern m en t ’ s “p ro p er res p ectfo r [S] tat e fu n ct i on s ”, wh i ch req ui res th atth e Fed eral Go v ern m en t , wh en i tcarri es o u ti t s fu nct i o n s an ddut i es , “ al way s en d eav o r[] t o d o s o i n way s th atwi l l n otu n du l y i n t erfere wi th th e l eg i t im at e act i vi t i es o f t he St at es .” Yo u n g er v . Harri s, 4 0 1 U.S. 3 7 , 4 4 (1 9 71 ); s ee Ut i l i co rp Un i ted , In c. v . Co m

m i ss i o n er, 1 0 4 T.C. 6 7 0 (1 9 9 5 ).- 3 7 -

m as t er s o ci al wo rkan dth e p ract i ce o f cl i n i cal s o ci al wo rk . N.Y. Ed u c. Law s ec. 7 7 0 1 . Ing en eral , an LCSWm ay p ract i ce t h e fu l l ran g e o f s o ci al wo rk , i n cl u d i n g d i ag n o s is an dtreat m en to f m en t al i l l nes s , wh ereas an LM SWm ay p erfo rm m an y ty p es o f s o ci al wo rkb u t m

u s t b e s up erv is edb y

an LCSWb efo re s h e m ay d i ag n o s e
o r ren d er t reat m en t. Id
. M s . Ho i s an LM SWan dn o tan LCSWu n d er New Yo rk l aw. Sh e was n o t
s up erv i s edb y

an LCSWwh i le p rep ari ng h er t es t i m on y . Res p o n d en targ u es th at b y p rep ari n g an ds ub m i t t i n g an ex p ertrep o rtan dth en t es t i fy i n g , M s. Ho h as
en g ag edi n th e u n lawfu l p ract i ce o f cl i n ical s o ci al wo rkwi th o u ts up erv is i on an d th atth erefo re we s h o u l dex cl u d e h er t es t i m o n y . Becau s e we fi n d t h atM s. Ho ’ s t es t i m o ny i s n otl i cen s edcl in i cal s o ci al wo rku n d er New Yo rk l aw, we o v erru l e
res p o n d en t’ s o b

ject i o n . Th e p ract ices o f l i cen s edm as t er s o ci al wo rkan dcl i n i cal s o ci al wo rkare d efi n edi n N.Y. Ed

u c. Law s ec. 7 7 0 1
. 2 1 Res p on d en tcl ai m s th atM s . Ho h as

2 1 N.Y. Ed u c. Law s ec. 7 7 0 1 (M cKi n n ey 2 0 1 6) p ro v i d es i n p art : 1 . Pract i ce o f l i cen s edm as t er s o ci al wo rk
. (a) Th e p ract i ce o f l i cen s edm as t er s o ci al wo rks h al l m ean th e p ro fes

s i on al ap p l icat i o n o f s o ci al wo rkth eo ry , p ri n ci p les , an d t h e m et h o d s t o p rev en t , as s es s , ev al u at e, fo rm u l at e an di m

p l em en t a p l an o f act i o n b as edo n cl i en tn eed s an ds tren g th s , an di n t erv en e t o ad dres s m en t al , (co n ti n u ed ...)- 3 8 -

2 1 (...co n t i nu ed ) s o ci al , em o ti o n al , b eh av i o ral , d ev el o p m en t al , an dad d i ct i v e d i s o rd ers , co n d i t i o n s an dd i s ab il i t i es , an do f t h e p s y ch o s oci al as p ect s o f i ll n es s an di n jury ex p eri en cedb y

i n d i v i du al s , co up l es , fam il i es , g ro up s , co m m u n i t i es , o rg an i zat i on s , an ds o ci et y . (b ) Li cen s edm as t er s o ci al wo rk ers en g ag e i n th e ad m i n i s trat i o n o f t es t s an dm eas u res o f p s y ch o s o ci al fu n ct i o n i n g , s oci al wo rkad v o cacy , cas e m an ag em en t, co u n s el in g , co n s u l t at i o n , res earch , ad m i n i s trat i o n an dm an ag em en t , an dt each i n g . * * * * * * * 2 . Pract i ce o f cl i n ical s o ci al wo rk
. (a) Th e p ract i ce o f cl in i cal s o ci al wo rken co m p as s es th e s co p e o f p ract i ce o f l i cen s edm as t er s o ci al wo rk an d , i n ad di t i o n , i n cl ud es th e d i ag no s i s o f m en tal , em ot i o n al , b eh av i o ral , ad d i ct i v e an dd ev el o p m en t al d i so rd ers an d d i s ab i l i ti es an do f th e p sy ch o s o ci al as pect s o f i l ln es s , i n jury , d i s ab i l i ty

an di m p ai rm en tu nd ert ak en wi th i n a p s y ch o s o ci al fram ewo rk ; ad m i n i s trat i o n an d i n t erp ret at io n o f t es t s an d m eas u res o f p s y ch o s oci al fu n ct i on i n g ; d ev el op m en t an d i m p l em en t at i o n o f ap p ro p ri at e as s es s m en t -b as edtreat m en t p l an s ; an dth e p ro v i s i o n o f cri s i s o ri en t edp s y ch o th erap y an d b ri ef, s h o rt -t erm

an d l o n g -t erm p s y ch o th erap y

an dp s y ch o th erap eu ti c treat m en tt o i n d iv i d

u al s , co up l es , fam i l i es an dg ro up s , h ab i li t at i o n, p s y ch o an al y s i s an d b eh av i o r t h erap y ; al l u n dert ak en fo r t h e p u rp o se o f p rev en t i n g, as s es s i n g , treat i ng , am el i o rat i n g an dres o l v i n g p s y ch os o ci al dy s fu n ct i o n wi th th e g o al o f m ai n t ai ni n g an d en han ci n g t h e m en t al , em o t i o n al , b eh av i o ral , an ds o ci al fu n ct i o n i n g an dwel l -b ei n g o f i n d i vi du al s , co upl es , fam i l i es , s m al l g ro up s, o rg an i zat i o ns , co m m u n i t i es an d s oci et y . (b ) Di ag n os i s i n th e co n t ex to f l i cen s edcl i n ical s o ci al wo rkp ract ice i s th e p ro ces s o f d i st i n gu i s h i n g , b ey o n d g en eral s oci al wo rkas s es s m en t , b et ween s i m i l ar m en t al , em o t i o n al , b eh av i o ral , d ev el o p m en t al (co n ti n u ed ...)- 3 9 -

d i ag n o s edM r. Tri m

m er an dth atth erefo re h er act i v i t ies co m e wi th i n th e d efi n i t io n
o f cl i ni cal s o ci al wo rkb u tn o twi th i n t h e ran g e o f act i v i t i es an LM SWcan p erfo rm wi th o u ts up erv i s i o n . Di ag n o s i s i s a cl i ni cal s o ci al wo rkact i v i ty th ati s ex p res sl y l i s t edi n th e
s t atu te as “ i n ad di t i o n ” t o the “ s co pe o f p ract ice o f l i cen s edm as t er s o ci al wo rk ”. N.Y. Ed u c. Law s ec. 7 7 0 1 .2 (a). Yetth e s tatu t e d efi nes d i ag n o s i s as “ th e p ro ces s
o f d i s t in g u i s h i n g , b ey o n dg en eral s o ci al wo rkas s es s m en t , b et ween s i m i l ar m en t al , em ot i o n al , b eh av i o ral , d ev el o p m en tal an dad d i ct iv e d i s o rd ers , i m p ai rm en t s an d d i s ab i l i t i es wi th i n a p s y ch o s o ci al fram ewo rko n th e b as i s o f t h ei r s i m il ar an d
u n i qu e ch aract eri s t i cs co n s i s t en twi th accep t edcl as s i fi cat io n s y s t em s ”. Id . s ub d i v . 2 (b ) (em p h as i s ad ded ). Al s o , th e d efi n i t i o n o f l i cen s edm as t er s oci al wo rk i n cl u d es “p ro fes s i o n al ap p l i cat i o n o f s o ci al wo rk theo ry ”. Id . s ubd i v . 1 (a). W e
are n o tco n v i n cedth atM s . Ho ’ s t es t i m o ny i s “b ey o n d g en eral s oci al wo rk
as s es s m en t ” o r an yth i n g o th er t h an “p ro fes s i o n al ap p l i cat i o n o f s oci al wo rk th eo ry ”. W e are aware o f n o cas e, reg u l at i o n , o r o th er au th o ri ty th ats up p o rt s
res p o n d en t’ s p o s i t i o n.

2 1 (...co n t i nu ed ) an dad d ict i v e d i s o rd ers , i m p ai rm en ts an dd i sab i l i t i es wi th i n a p s y ch o s o ci al fram ewo rko n th e b as i s o f t h ei r s i m i lar an du n i qu e ch aract eri s ti cs co ns i st en t wi th accep t edcl as s ifi cat i on s y st em s .- 4 0 -

Acco rd i ng l y , we d o ub tthatM s . Ho ’ s ev al u at i o n o f M r. Tri m m er ri ses t o th e l ev el o f a “ d i ag n o s i s ” u nd er New Yo rk St at e l aw; b u t ev en i f i td o es , s h e d i dn o t th ereb y ex ceed h er au tho ri ty . As we d i s cu s s b el o w, h er ev al u at i on was n o t cl i n i cal s o ci al wo rkan dwas th erefo re p erm i t t ed
. Th e s t atu te d efi n es cl i n i cal s o ci al wo rk , as i tex ceed s the s co p e o f l i cen s ed
m as t er s o ci al wo rk , b y

l is t i n g th o s e act i v i t i es th atan u n s up erv i s ed LM SWm ay n o t p erfo rm ; atth e en do f th e l is t , th i s p h ras e ap p ears : “ [A] l l u n d ert ak en fo r t h e p u rp os e o f p rev en t in g , as ses s i n g , treat i ng , am el i o rat i ng an d res ol v i n g p s y ch o so ci al dy s fu nct i o n wi th th e g o al o f m ai n t ai ni n g an den h an ci n g th e m en t al , em ot i o n al , b eh av i o ral , an d s oci al fu n ct i o n i n g an dwel l -b ei n g o f i n d i v i du al s , co upl es , fam i l ies , s m al l g ro ups , o rg an i zat io n s , co m m u ni t i es an ds o ci et y .” Id
. s ub d iv . 2 (a). Th e wo rd“ al l ” i n d i cat es th atth e p art i ci p le “ un d ert ak en ” m o d i fi es
ev ery i t em o n th e l is t , i n cl u di n g “ d i ag n o s i s ”. M s . Ho d idn o t ev al u at e M r. Tri m m er fo r t h e p u rp o s e o f “p rev en t i n g,
as s es s i n g , treat i ng , am el i o rat i ng an dres o l v i n g” an y dy s fu n ct i o n --M r. Tri m

m er’ s d ep res s i o n was res o lv edb y th e t i m e M s. Ho s aw h i m . Sh e t h erefo re co u l dn o t h av e ev al u at edh im

fo r the p urp o s es o f p rev en t i n g , treat i n g , am el i o rat i n g , o r
res o l vi n g h i s i l l nes s , an d as we n o tedab o v e, an LM SWm ay u n d ert ak e g en eral
s o ci al wo rkas s es s m en t(b y i t s el f) wi th o uts uperv i s i o n . Ad d i t i o nal l y , th e g o al o f- 4 1 -

M s . Ho ’ s t es t i m o ny

h adn o th i n g t o d o wi th “ m ai n t ai n i ng an den h an ci ng th e
m en t al , em o t i o n al , b eh av io ral , an ds o ci al fu n ct i o n in g an dwel l -b ei ng ” o f M r. Tri m m er (o r an y o n e el s e). Fo r t h es e reas on s we co ncl u d e t h atM s . Ho ’ s ex am i n at i o n o f M r. Tri m m er, th e co m pi l at i o n o f h er ex p ertrep o rt , an dh er t es t i m o n y i n thi s cas e were n ot
u n d ert ak en fo r t he p u rp os es s t at edi n N.Y. Ed u c. Law s ec. 7 7 01 .2 (a) an dth erefo re
are n o tcl i n i cal s o ci al wo rk . Co n s equ en t l y , M s . Ho ’ s ex am in at i o n o f M r. Tri m m er, h er ex p ertrep o rt , an dh er t es t im o n y were n o tp ro h i b i t edb y

New Yo rk l aw, an d acco rd in g l y

we o v erru l e res p o n d en t ’ s o b ject i o n . See al s o Geo p h y s i cal Sy s . Co rp . v . Sei s m o g rap h Serv . Co rp ., 7 3 8 F. Sup p . 3 4 8 , 3 4 9 (C.D. Cal . 1 9 9 0 ) (“ [T] h e ren d eri n g o f an ex p erto p i n i o n i n co u rti s n o tth e p ract i ce o f a p ro fes s i on [.] ”).

3
. Res p o nd en t ’ s Rem ai n i n g Ob j ect i o n s Res p o n d en to b

ject s th atM s . Ho ’ s rep o rts h o u l d b e ex cl u d edu n d er Ru l e 1 4 3 (g )(2 ) b ecau s e p et i ti o n ers s ub m i t t edi t t o th e Co u rtan ds erv edi to n res p o n d en t 2 2 d ay s b efo re t ri al , i n s t eado f 3 0 d ay s b efo re as g en eral l y req u i redu n d er Ru l e 1 4 3 (g )(2 ). W e m ay , h o w ev er, ex cu s e u n t i m el in es s th ati s due t o g o o d cau se an d d o es no tu ndu l y p reju d i ce t h e o p p o si n g p art y . Ru l e 1 43 (g )(2 ).- 4 2 -

Pet i t i o ners ’ co u n s el , a m em b er o f t h e Fo rd h am

Law Sch o o l Cl i n i c, rep res en t s th at th e l at en es s o f th e rep o rtwas due t o a v ari ety o f cau s es , i n cl u d i n g l i m i tat i on s an ds ch edu li n g p ro bl em s o f an acad em i c cl i n i c. Whi l e we d o n o tt ak e
m i s s edd ead l i n es l i gh t l y , upo n du e co ns i d erat i o n o f al l th e ci rcu m s tan ces an dth e p art i es ’ arg u m en ts , we are s at i sfi edth ere was g o odcau se fo r th e m i s s ed d ead l i n e. Fu rt herm o re, res p o n den twas n o tu n du ly p reju d i cedb y

th e l at en es s o f t h e rep o rt , wh i ch p et i t io ners s en t t o res p on d en tv i a em ai l an do v ern i gh t m ai l 2 2 d ay s b efo re t ri al . Res p o n den t ’ s co u n s el was ab l e t o p rep are a t ho ro u g h m ot i o n i n l i m i ne d et ai l i n g o b

ject i on s t o th e t es t i m on y . Res p o n d en t ’ s co u ns el al so ab l y arg u ed h er m o ti o n i n l i m in e an dab l y cro s s -ex am i n edM s . Ho . M o reo v er, we
res erv edru l i n g o n res p o nd en t ’ s m ot i o n an dal l o w edth e p art i es t o i n cl u d e arg u m en t s reg ard i n g th e ad m i s s i b i l i ty o f M s . Ho ’ s t es t i m o n y

i n th ei r p o s t tri al b ri efs . Fi n al l y , res po n d en t ’ s co u n sel h as n o t o u t l i n edan y m eas u res , i n ad d i t i o n t o h er m o t i o n an dcro ss -ex am i n at i o n , wh i ch s h e wo ul dh av e t ak en h ads h e h adan ad d it i o n al ei g h td ay s . Res p o n d en t ’ s o b ject i o n i s th erefo re o v erru l ed
. Res p o n d en tal s o co nt en d s th atM s . Ho ’ s t es t i m o n y m u s tb e ex cl u ded b ecau s e th e ex p ertrep o rtfai l s t o s tat e t h e qu al ifi cat i o n s o f h er as si s t an t , wh o s e
n am e an ds i gn atu re are o n th e rep o rt(al on g wi th M s . Ho ’ s n am e an ds i g n atu re). Res po n d en tco n t en d s th at“ th e t ru e au th or” o f t h e rep o rtwas M s . Ho ’ s as s i s t an t- 4 3 -

an d th atRu l e 1 43 (g )(1 )(D) req u i res th e ex p ertrep o rtt o s t at e t h e qu al ifi cat i o n s n o t
o n l y o f t h e t es t i fy i n g ex pert b u tal s o o f an y as s i s tan twh o s i g n s t h e rep o rt
. W e o v erru l e t h i s o b

ject i o n fo r s ev eral reas o ns . Fi rs t, th e p l ai n l an g u ag e o f Ru l e 1 4 3 (g )(1 )(D) req u ires the rep o rtt o co n t ai n o n l y “ th e wi tn es s ’ s qu al i fi cat i o n s ”. Seco n d , an ex p ertwi tn es s i s “p erm i t t edt o u s e as s i s t an t s i n fo rm u l at i n g h i s ex p ert o p i n io n , an dn o rm al l y th ey n eed n o tth em s el ves t es t i fy ”. Du ra Au t o . Sy s. o f In d ., In c. v . CTS Co rp . , 2 85 F.3 d 6 0 9 , 6 1 2 (7 th Ci r. 2 0 0 2 ). Fu rt h erm o re, ru l es 7 0 3 an d7 05 o f t h e Fed eral Ru les o f Ev i den ce g ov ern th e b as i s fo r an ex p ert ’ s o p i n i o n; ru l e 7 03 ex p l i ci t l y al l o w s an ex p ertt o fo rm h er o p i n i o n o n th e b as i s o f fact s o r d at a t hatthe ex p ert“ h as b een m ad e aware o f”. Fi n al l y , up o n
rev i ew o f th e reco rdwe are co n v in cedth atM s . Ho ’ s as s is t an td i d n o t“ ex erci s e p ro fes s i on al ju d g m en tthati s b ey o n dth e ex p ert ’ s k en ”. Dura Au t o . Sy s . , 2 8 5 F.3 d at6 1 3
. If s h e h ad , th ere m ig hth av e b een a qu es t i on as t o wh et h er M s . Ho was fu n ct i o n i n g as a m ere “ m o ut hp i ece o f a s ci en t i s ti n a d i fferen t s p eci al ty ”. Id . at 6 1 4 . Bu t as i ts t an d s , n o thi n g s u g ges t s th atM s. Ho ’ s as s i s t an t fu n ct i on edo u t s id e
o f M s . Ho ’ s area o f ex pert i se o r o u t s i d e o f h er s up erv i s i o n . Th erefo re, fo r al l th es e reas o n s, res po n d en t ’ s o b ject i o n i s o v erru l ed
. Res p o n d en tal s o o b

ject s th at M s . Ho ’ s rep o rtd oes n o t co n t ai n a s t at em en t
o f t h e co m

p en s at i o n t o b e p ai dfo r h er s tu dy an dt es t i m o n y , as req u ired b y Ru l e- 4 4 -

1 4 3 (g )(1 )(F). Bu tb ecau s e M s . Ho p ro v id edh er s erv i ces p ro b on o , th ere was n o
co m p en s at i o n fo r h er t o d i s cl o s e. Res p o n d en tal s o o bject s t h atM s . Ho ’ s p ub l i cat i on s were n o ts t at ed , as req u i redb y Ru le 1 43 (g )(1 )(D). Res p on d en ti s
m i s t ak en ; M s . Ho ’ s p ub li cat i o ns are l i st edo n th e cu rri cu l u m v i t ae at t ach edt o h er rep o rt . Res p on d en tal s o o b j ect s th atM s . Ho ’ s rep ortd o es n oti n cl u d e a l i s to f al l
o th er cas es i n whi ch s h e h as t es t i fi edas an ex p ert du ri n g th e p rev i o u s fo u r y ears , as req u i redu n d er Ru l e 1 4 3 (g )(1 )(E). Bu tM s . Ho h as n ev er t es t ifi edas an ex p ert b efo re, s o th ere was n o p ri o r t es t i m o n y t o d i s cl o s e. In s u m , we o verru l e al l o f res p o n den t ’ s o bject i o n s . Res p o n d en t ’ s m o t i o n i n l i m i ne wi l l b e d en i edan dM s . Ho ’ s t es t i m o ny ad m i t t ed
. F. Pet i t i o ners ’ Hard s h i p W ai v er Th i s b ri ng s u s , fi n al l y , t o the m eri t s o f p et i t io n ers ’ req u es tfo r a h ard s h i p wai v er. Fo r t h e read er’ s co n v en i en ce, we o n ce ag ai n s et o u tth e rel ev an tp ro v i s i o n
o f s ect i o n 4 0 2(c)(3 )(B): “ Th e Secret ary m ay wai v e t he 6 0 -d ay

req u i rem en t* * * wh ere t h e fai l u re t o wai ve s u ch req u i rem en two u l d b e ag ai ns tequ i ty o r g oo d
co n sci en ce, i n cl ud i n g cas u al ty , d i s as t er, o r o th er ev en t s b ey on dth e reas o n ab l e
co n tro l o f t h e i n d iv i du al s ubjectt o s u ch req u i rem en t .” Th e Co d e d o es n o t d efi n e t h e p hras e “ ag ai n s t equ i ty o r g o o dco n s ci en ce”,
an d i tap p ears n o wh ere el s e i n th e Co d e (ex cep ti n s ect i o n 4 0 8 (d )(3 )(I), wh i ch- 4 5 -

p ro v id es i d en t ical wai ver au th ori ty fo r t h e an al o g o u s 6 0 -d ay d ead l i n e i n th e IRA d i s tri b u t i o n co n tex t ). Ho wev er, a v ery s i m i l ar p h ras e, “ ag ai n s t equ i ty an dg o o d
co n sci en ce” (em

p h as i s ad d ed ), ap p ears i n s ect i on 6 6 5 4(e)(3 )(A), wh ich p ro v i d es th atn o ad d i t i o n t o t ax fo r fai lu re t o p ay es t i m at edi n co m e t ax s h al l b e i m p os edi f th e Secret ary

d et erm i n es th at“b y

reas o n o f cas u al ty , d i s as t er, o r o th er u nu s u al ci rcu m s t an ces th e i m

p o s i t i o n o f s u ch ad di t i o n t o t ax wo u l db e ag ai n s tequ i ty an d g o o dco n s ci en ce”. In M ey er v . Co m m i s si o n er, T.C. M em o . 2 0 0 3 -1 2 , th e Co u rt ci t ed b o th s ect i o n 6 6 54 (e)(3 )(A) an d(B) i n wai vi n g th e s ect i on 6 6 5 4(a) ad d i t i o n t o t ax b ecau s e M r. M ey er s u fferedfro m s ev ere h eal th p ro b l em s ; h e h adb een d i ag n o s edwi th HIV an dAIDS, s u ffered a n erv ou s b reak do wn , an dh adt o t ak e a l eav e o f ab s en ce fro m

h is jo b . Th e Co u rti s aware o f n o o th er cas es ex p li cat i n g
s ect i on 6 6 5 4 (e)(3 )(A). If we l o oko u t s i d e t h e Co d e, t he p h ras e “ ag ai n s tequ i ty o r g o o dco n sci en ce”
o r t h e m o re co m

m o n p h ras e “ ag ai n s tequ i ty an dg o odco n s ci en ce”, o ft en ap p ears i n Fed eral s t atu t es i n co n t ex t s wh ere t h e Go v ern m en tm u std eci d e wh et h er a
reco v ery o f erro n eo u sl y d i sb u rs edfu n d s s ho u ldb e at t em p t ed
. See Rai l ro ad Ret i rem en tActo f 1 9 7 4, Pub
. L. No
. 9 3 -4 45 , s ec. 1 0 (c), 8 8 St at . at 1 3 4 4 (co d i fi ed
as am en dedat4 5 U.S.C. s ec. 2 3 1 i (c) (2 0 1 2 )); Rai l ro ad Un em p l o y m en tIn s u ran ce ActAm en d m en t s , ch . 8 4 2, s ec. 1 1 , 5 4 St at . at 1 0 9 6 (1 9 4 0 ) (co d i fi edas am en d edat- 4 6 -

4 5 U.S.C. s ec. 3 5 2 (d ) (2 0 1 2 & Sup p . I 2 0 1 3 )) (al l u s in g th e p hras e “ ag ai n s tequ i t y
o r g o odco ns ci en ce”); s ee al s o 5 U.S.C. s ecs . 5 5 8 4 (a), 8 34 6 (b ), 8 4 7 0 (b ) (2 0 1 2 ); 1 0 U.S.C. s ecs . 1 4 42 , 1 4 5 3 (b )(2 ) (2 0 1 2 ); 3 7 U.S.C. s ecs . 3 0 3a(e), 3 7 3 (b ) (2 0 1 2 ); 3 8 U.S.C. s ec. 5 3 02 (a) an d(b ) (2 01 2 ); In t el l i g en ce Au th o ri zat i o n Actfo r Fi s cal Year 1 9 9 3 , Pub . L. No
. 1 0 2-4 96 , s ec. 2 6 5 , 1 0 6 St at . at3 2 3 7 -3 23 8 (co d i fi edat5 0 U.S.C.
s ec. 2 0 95 (2 01 2 )); So ci al Secu ri ty Am en dm en t s o f 1 96 7 , Pub . L. No . 9 0 -2 48 , s ec. 1 5 2 (b ), 8 1 St at . at8 6 1 (co d i fi edas am en d edat4 2 U.S.C. s ec. 4 0 4 (b ) (2 0 1 2 & Sup p . III 2 0 1 5 )); So ci al Secu ri ty Am en d m en t s o f 1 9 6 5 , Pub . L. No . 8 9 -9 7 , s ec. 1 8 7 0 (c), 7 9 St at . at3 3 1 (co d i fi edas am en d edat4 2 U.S.C. s ec. 1 3 9 5 g g (c) (2 0 1 2 & Sup p . I 2 0 1 3 )) (al l u s i n g the p hras e “ ag ai n s tequ i ty an dg o odco n s ci en ce”). In Gro s ecl o s e v . Bo wen , 8 0 9 F.2 d5 0 2 (8 th Ci r. 1 9 8 7 ), the co u rtco n s i d ered th e m ean i n g o f “ ag ai ns tequ it y an dg o o d co n s ci en ce” as i t ap p ears i n 4 2 U.S.C.
s ec. 4 0 4(b ) (rel at i n g t o ad ju s t m en to r reco v ery

o f Fed eral o l d -ag e, s u rv iv o rs , an d d i s ab i l i ty b en efi t s ). Ito bs erv edth at“ th e t erm ‘ equi ty d en o tes th e s p i ri tan dh ab i t
o f fai rn es s an dju s tn es s .’ ” Gro s ecl o s e, 8 0 9 F.2 dat5 0 5 (quo t i n g Gi l l es v . Dep ’ to f Hu m an Res . Dev ., 5 2 1 P.2 d1 1 0 , 1 1 6 n .1 0 (Cal . 1 97 4 ) (qu o ti n g Bl ack ’ s Law Di ct i o n ary

6 3 4 (4 th ed . 1 9 5 7 )). Itfu rt h er o b s erv edth at“ [t ] h e t erm co ns ci en ce
m ean s ‘ th e s en s e o f ri g h to r wro n g * * * t o get h er wi th a feel i n g o f o b l i g at io n t o d o
o r b e t h atwh i ch i s reco g n i zedas g o o d
. ’ ” Id . (qu o ti n g W eb s t er’ s Th i rdNew- 4 7 -

In t ern at io n al Di ct io n ary

4 8 2 (1 9 8 1 )). Th e co urtn o t edthat“ ag ai n stequ i ty an d g o o dco n s ci en ce” i s “ l an g u ag e o f u n u s u al g en eral i ty ”, an dth ats u ch b ro ad l an g u ag e “ n eces sari l y

an ti ci p at e[s ] th atth e t ri er o f fact , i n s teado f at t em p t i n g t o ch an nel ize h i s d eci s i o n wi th ri g i dan ds p eci fi c ru les , wi l l draw up o n p recep t s o f ju s t ice an dm o ral it y

as the b as i s fo r h i s ru li n g . ” Id . (qu o t i ng Gi l l es , 5 2 1 P.2 dat 1 1 6 ); s ee al s o Qu in l i v an v . Su l l i v an , 9 1 6 F.2 d5 2 4 , 5 2 6 -5 2 7 (9 th Ci r. 1 9 9 0) (ad o p t i n g th e reas o n i n g o f Gro s ecl o s e an d co ncl u d i n g th ati n u s i n g th e p h ras e

“ ag ai n s tequ i ty

an dg o o dco n s ci en ce”, wi th res p ectt o wai v ers o f o v erp aym en t s o f d i s ab i l i ty b en efi t s , “ Co n g res s i n t en d eda b ro adco n cep to f fai rn es s t o ap pl y t o wai v er req u es t s , o n e t h atrefl ect s th e o rd i n ary m ean i n g o f t he s t atut o ry l an g u ag e
an d t ak es i nt o acco u ntth e fact s an dci rcu m s t an ces o f each cas e”). Si m i l arl y , s ect i o n 4 0 2 (c)(3 )(B), l i k e th e l eg i s l at i ve h i s t o ry an d Rev . Pro c. 2 0 0 3 -1 6 , s up ra, s i g n al s t h atwe s h o u l dco n s tru e “ equ i ty o r g o o dco n s ci en ce” t o refl ecta b ro ad an d fl ex i b l e co n cep to f fai rn es s , b y p ro v i d i n g a n o n ex h au s t i v e l i s t
o f s i tu at i o n s th atm i g h ts at i s fy th e g en eral s t an d ard
. 2 2

2 2 Sec. 4 0 2(c)(3 )(B), t h e acco m p an y i n g co n feren ce co m

m i tt ee rep o rt , an d Rev
. Pro c. 2 0 0 3 -1 6 , s up ra (wh i ch m i rro rs th e s t atu t e an dco n feren ce co m m i t t ee rep o rti n k ey

res pect s ) al l d es cri b e ci rcu m s tan ces th atm ig h ts up p ortth e g ran t i n g o f a h ard s h i p wai v er as “ i ncl u d i n g ” cert ai n ci rcu m st an ces an ds o d o n o t n eces s ari l y

fo recl o s e o ther ci rcu m s t an ces fro m th e i n t en d eds co p e o f rel i ef. See s ec. 7 7 01 (c) (“ Th e t erm s ‘ i n cl u d es ’ an d‘ i n cl u d i n g’ wh en u sedi n a d efi n i t i o n (co n ti n u ed ...)- 4 8 -

Larg el y m i rro ri n g s ect io n 4 02 (c)(3 )(B) an dth e co n feren ce co m m it t ee rep o rt , s ect i o n 3 .0 2 o f Rev . Pro c. 2 00 3 -1 6, 2 0 03 -1 C.B. at3 59 , s t at es th atth e IRS wi l l i ss u e a ru l i n g wai v i n g t h e 6 0 -d ay ro l l o ver req u i rem en t “ i n cas es wh ere t h e fai l u re t o wai v e s u ch req u i rem en two u l db e ag ai n s tequ i ty o r g o o dco n sci en ce, i n cl u d i n g cas u al ty , d is as t er, o r o t h er ev en ts b ey o n dth e reas o n ab l e co n tro l o f t h e t ax p ay er.” Itg o es o n t o p ro v i d e t h e fo ll o wi n g o b ject i v e fact o rs t o b e u s edi n d et erm i n i n g wh eth er t o g ran ta h ard s h i p wai v er: In d et erm in i n g wh et h er t o g ran t a wai v er, t he Serv ice wi l l co n s i d er al l rel ev an tfact s an dci rcu m s t an ces , i n cl u di n g : (1 ) erro rs co m m i t tedb y a fi n an ci al i n s t i tu t i on * * * ; (2 ) i n ab i li ty t o co m p l et e a ro l lo v er du e t o d eat h, d i s ab i l i ty , h o s p it al i zat i o n , i n carcerat i o n , res tri ct i o n s i m p os ed b y a fo rei g n co u nt ry

o r p o s t al erro r; (3 ) t h e u s e o f t h e am o u n t d i s tri b u t ed(fo r ex am

p l e, i n th e cas e o f p aym en tb y ch eck , wh et h er th e ch eckwas cas h ed ); an d(4 ) t he t im e el ap seds i n ce th e d is tri b u t i o n o ccu rred
. Of th es e fo ur fact o rs , th ree p res en tl i t t l e d i ffi cu l ty i n th i s cas e. Th e fi rs t fact or i s i n ap p l i cab l e--t h ere was n o erro r co m m i tt ed b y an y fi n an ci al i ns t i tu t i o n .

2 2 (...co n t i nu ed ) co n tai n edi n th i s t i t l e s h al l n otb e d eem ed t o ex cl u d e o ther t hi n g s o th erwi s e wi t h i n th e m ean i n g o f the t erm

d efi n ed .”). Becau s e we co n cl u d e t h atp et i t i o ners ’ ci rcu m s t an ces are wi thi n t h e s co p e o f en u m erat eds i tu at i o n s , an dth erefo re t h at th ey are en t i t l edt o rel i ef, we n eedn o tan dd o n o td eci d e t o wh atex t en to th er ci rcu m s t an ces m i g h tal s o qu al i fy fo r h ard s h ip wai v ers .- 4 9 -

Th e t h i rdan dfo u rth fact o rs are fav o rab l e t o p et it i o n ers . 2 3 Th ey n ev er m ad e an y
u s e o f th e am o u n t s recei vedi n th e t wo d i s tri b u t i o n s o th er t h an t o d ep o s i tth em i n t o a jo i n t b an k acco u n t , wh ere t h ey rem ai n edu n t i l p et i t i o n ers ro l l edth em o v er i n to
an IRA. Pet it i o n er’ s p ro fi t edi n n o m ean i n gfu l way fro m ret ai n i n g th e fu nd s i n th ei r jo i n tb an kacco u n t du ri n g th e i n t eri m . 2 4 M oreo v er, wh en p et i t i o ners ’ t ax p rep arer al ert edM r. Tri m m er t o th e ro l l o ver p ro b l em , M r. Tri m m er co m p let ed t h e
ro l l o ver v ery

s o o n t h ereaft er. Th e rem ai n i n g fact o r, “ i n ab i l i ty t o co m pl et e a ro l l o v er du e t o * * * d i s ab i l i ty ”, Rev . Pro c. 2 0 0 3 -1 6, s ec. 3 .0 2 , requ i res m o re ex t en d edan al y s i s . W e h av e fo u n dth at M r. Tri m m er s u ffered fro m

m ajo r d ep res s i v e d i s o rd er, wh i ch
co m m en cedap p ro x i m at el y

th ree week s aft er h i s ret i rem en to n Ap ri l 3 0 , 2 0 1 1 , an d p ers i st edu n t i l the s u m

m er o f 2 0 1 2 . M r. Tri m

m er’ s d ep res si o n cau seda m ark ed ch an ge i n act i v i ty

l ev el an ds l eep p at t ern s . He l efth i s h o m e i n freq u en t l y an d

2 3 Onb ri ef res p o n den ti g n o res th es e two fact o rs , p res u m ab l y b ecau s e t h ey are fav o rab l e t o p et i t io n ers . Wh et her we reg ardres p o n d en t ’ s fai l u re t o ad dres s th es e fact o rs as a co n ces s io n i n t h i s reg ardo r s i m p ly as a m i s ap p li cat i o n o f an IRS rev en u e p ro cedu re m ak es l i t t l e d i fferen ce t o o u r an al y si s.

2 4 Al th o u g h we are m i n d fu l th ati n s o m e res p ect s d ep o s it i n g a ch ecki n t o a b an k acco u n tm i g h tb e co n s i dered equ i v al en t t o cas h i n g th e ch eck , we d o n o t b el i ev e t h atb y

s i m p l y d ep o s i t in g th e ch ecki n t o th ei r b an kacco u nt , wi tho u t m ak i n g an y

fu rt h er u s e o f t h e fu n d s , p et i t io n ers m ad e s i g ni fi can t “ u s e o f t h e am ou n td i s tri b u t ed ” wi th i n t h e m ean i ng o f Rev . Pro c. 2 0 0 3 -1 6 , s ec. 3 .0 2 , 2 0 0 3 -1 C.B. at3 6 0
.- 5 0 -

ex p eri en cedd i ffi cu l ty i n t eract i n g wi th o th er p eo p l e. He was s o ch an g eddu ri n g th i s p eri o dth atM rs . Tri m m er cam e t o b el i ev e t h ats h e co u l d n otd ep en d o n h i m t o carryo u tt as k s h e h adp rev i o us l y an drel i ab l y

p erfo rm ed . Sh e fel tth at s he n eed ed t o m o n i t o r h i m , s o th ats h e m i g h to ffer en co u rag em en t o r i n t erv en e t o h el p h i m th ro u g h ev en t s o r act iv i t i es . Onth e b as i s o f al l th e ev i d en ce i n t h e reco rd , we
co n cl u d e th atM r. Tri m

m er’ s m ajo r d ep res si v e d i s o rd er co n s t i tu t eda d i s ab i l i ty th ro u g h ou tth e rel ev an tp eri o dfo r t h e p u rp os es o f s ect io n 4 0 2 (c)(3 )(B) i n th ati t
s i gn i fi can t l y

i m pai redh is ab i l i ty

t o p erfo rm d ay -t o -d ay

act i v i t i es . 2 5 W e fu rt h er co n cl u d e, o n th e b as i s o f al l the ev i d en ce i n the reco rd , th atM r. Tri m m er’ s fai l u re t o m eet th e 6 0 -d ay ro l l ov er req u i rem en twas at tri b u t ab l e t o h i s d i s ab i l i ty . Cf. M ey er v . Co m m i s s i o n er, T.C. M em o . 2 0 0 3 -1 2 . Al l the ev i d en ce i n d i cat es th ath i s d ep res si o n s eti n aft er h e requ es t edth atam o u nt s b e d is b u rs ed fro m h i s ret i rem en t acco u n t s b u tb efo re h e recei v edth e fi rs to f t h e t wo

2 5 W e n o te t h at th e n ew s el f-cert i fi cat i on p ro cedu res ap p ly t o s itu at i o n s , am on g o th ers , wh ere “ th e t ax p ay er o r a m em b er o f t h e t ax p ay er’ s fam i l y was s eri ou s l y i l l ” wi th o utreferen ce t o “ d i s ab i l i ty ”. Rev . Pro c. 2 01 6 -4 7 , s ec. 3 .0 2(2 )(f). Al th o u g h th e s el f-cert i fi cat i o n p ro cedu res are i n ap p l i cab l e i n th i s cas e, i t w o u ldap p ear t h atth e “ seri o u s l y i l l ” s t an d ardo f Rev
. Pro c. 2 0 1 6 -4 7, s up ra, s h o u ldi n fo rm

th e “ d i s ab i li ty ” s t an d ardo f Rev
. Pro c. 2 0 0 3 -1 6, s up ra, s i n ce b o th are ad dres s edt o the i d en t i cal “ equ i ty o r g oo d co n s ci en ce” s t an d ardo f s ec. 4 0 2 (c)(3 )(B). J u s tas th e “ s eri o u s l y i l l ” s t an d ardd o es n o tco n n o t e co m p l et e an d t o t al i n cap aci t at i o n , n ei th er d o es the “ d i s ab il i ty ” s t an dardo f Rev . Pro c. 2 0 0 3 -1 6 , s up ra.- 5 1 -

d i s b u rs em en tch eck s i n th e m ai l o n M ay 2 7 , 2 0 1 1 . M r. Tri m

m er’ s i l l n es s t h en p ers i st edfo r ap p ro xi m at el y a y ear, l i n g eri ng u n t i l the s u m m er o f 2 0 12 . M r. Tri m m er was th erefo re d ep res s edth ro u g h o u t th e rel ev an t p eri o d. M o reo v er, t h e
s am e fact s wh i ch l edu s t o co n cl u d e t h atM r. Tri m m er s u ffered fro m

a d i s ab i l i t y fo r t h e p u rp o s es o f s ect i o n 4 0 2 (c)(3 )(B) al s o l eadu s t o co ncl u d e th ath i s i l l n es s
s i gn i fi can t l y

i m pai redh is ab i l i ty

t o p erfo rm th e n eces saryro l l o ver. 2 6 In s u m , co ns i d eri n g al l th e fact s an dci rcu m s t an ces , we co n cl u d e th atM r. Tri m m er m eet s th e o b

ject i v e fact o rs fo r a h ard sh i p wai v er as s etfo rt h i n Rev
. Pro c. 2 00 3 -1 6 , s up ra.

2 6 In reach in g thi s co n cl u s i o n we are m i nd fu l th at , as res p o n d en t p o i n t s o u t , M r. Tri m m er was n o t t o t al l y

i n act i v e du ri n g t h e rel ev an tp eri o d --h e wro t e s o m e ch eck s atthe b eh es to f h i s wi fe an d s on s , an dh e d ep o s i t edth e ch eck s fro m th e two d is tri b u t i o n s i n t o th e b an k b efo re t h e ro l lo v er p eri odh adex p i red
. W e are n o t p ers u ad ed , h o wev er, t h atth e fact th atM r. Tri m m er was ab l e t o p erfo rm

th es e rel at i v el y ro u t i n e t as k s , g en eral l y

at th e p ro m

p t i ng o f fam il y

m em b ers , m ean tth at h e was al s o cap ab l e o f i n it i at i n g an dcarry in g o utth e m o re i n v ol v ed p ro ces s o f i d en t i fy i n g an o th er el i g i b le ret i rem en tp l an i n t o wh i ch t o ro l l o ver t he fu nd s an d u l t i m at el y

s et t i n g up an IRA i n wh i ch t o d ep os i tth e ch eck s. If an ythi n g , th e fact th ath e l eft tw o ch eck s t ot al i n g o v er $ 1 0 0,0 0 0 o n h i s dres s er ath o m e fo r o v er a m o nt h b efo re d ep o s i t i n g t h em i n th e b an k v i v id l y

ev i d en ces h i s i m

p ai redm en t al co n di t i o n . An d al tho u g h o n cro s s -ex am i n at i o n res p on d en tel i ci tedfro m M r. Tri m m er a “ Yes ” i n res p o n s e t o a qu es t i on wh et her h e h adwo rk edp artt i m e as a h i g h s ch o o l referee “ duri n g 2 0 1 1 an d 2 0 1 2 ”, o n th e b as i s o f al l th e ev i d en ce i n the reco rdan dg en eral l i fe ex p eri en ce we d o n o tb el i ev e t h atM r. Tri m m er was refereei n g h i g h sch oo l b as k etb al l g am es du ri ng th e s u m m er o f 2 0 1 1 o r atan y

o t h er rel ev an t t i m e.- 5 2 -

Fi n al l y , al th o u g h p ri v at e l et ter ru l i n g s h av e n o p reced en t i al effect , s ee s ec. 6 1 1 0 (k )(3 ), an dt ax p ay ers are n o t en t i t l edt o rel y up on p ri v at e l et t er ru l i ng s n o t
s p eci fi cal l y

i ss u ed to th em , p ri v at e l et t er ru li n g s m ay b e i n s tru ct i v e i ns o far as th ey

“ rev eal th e i n t erp ret at i o n p u tup o n the s tatu t e b y th e ag en cy

ch arg edwi th th e
res p o n s i b i l i ty

o f ad m i n i s t eri n g th e rev en u e l aws ”, Han ov er Ban kv . Co m m i s s i on er, 3 6 9 U.S. 6 7 2 , 6 8 6 (1 96 2 ). 2 7 W e h av e ex am i n edth e Co m m i s s i o ner’ s p ri v at e l et t er ru l in g s t o u n d ers tan dh i s cu s t o m ary co n s tru ct i o n o f s ect io n 4 0 2 (c)(3 )(B) i n ad m i ni s teri ng th e t ax l aws , an d we h av e n o t fo u n d an y es po u s i n g
an i n t erp ret at i on o f s ect io n 4 02 (c)(3 )(B)--o r th e i d en t i cal p ro v i s io n o f s ect i o n 4 0 8 (d )(3 )(I)--t h ati s i n co n s i s t en twi th g ran t i n g a wai ver i n M r. Tri m m er’ s cas e; i n fact , th e Co m

m i s s i o n er h as g ran t edwai v ers i n ci rcu m s t an ces s i m i l ar t o M r. Tri m m er’ s . 2 8 W e co n cl u d e t h atg ran t i n g p et i ti o n ers a wai ver i s co n s i s t en t wi th the

2 7 See al s o Th o m v . Un i t edSt at es , 2 8 3 F.3 d 9 39 , 9 4 3 n .6 (8 th Ci r. 2 0 0 2 ); W el l s Farg o & Co . & Sub s . v . Co m m i s s i o n er, 2 2 4 F.3 d8 7 4 , 8 8 6 (8 th Ci r. 2 0 0 0 ), aff’ g i n p art , rev ’ g in p artNo rwes tCo rp . v . Co m m is s i o n er, 1 1 2 T.C. 8 9 (1 9 9 9 ); Tran s co Ex p l . Co . v . Co m m i s s i o n er, 9 4 9 F.2 d8 3 7 , 8 40 (5 th Ci r. 1 9 9 2), aff’ g 9 5 T.C. 3 7 3 (1 9 9 0 ); Es t at e o f Cri s t o fan i v . Co m m i s s i o n er, 9 7 T.C. 7 4 , 8 4 n .5 (1 9 9 1 ); W o o d s In v . Co . v . Co m

m is s i o n er, 8 5 T.C. 2 7 4, 2 8 1 n .1 5 (1 9 8 5).
2 8 See, e.g ., Pri v . Ltr. Ru l . 2 0 1 5 3 50 2 9 (Au g . 2 8 , 2 0 1 5 ) (wai v er g ran tedt o t ax p ay er s u fferi ng fro m

“ m i l d co g ni t i v e i m

p ai rm en tan d m o d erat e cl in i cal d ep res s i o n ”, wh o was “ n ot aware t h ath e d i dn o t ro l l o ver Am o u n t 1 t o an o th er IRA u n t i l h i s t ax return fo r 2 01 3 was b ei n g p rep ared ”); Pri v . Ltr. Ru l . 2 0 1 3 2 3 0 4 4 (J u n e 7 , 2 0 1 3) (wai v er g ran t edt o t ax p ay er wh o was “ u n d er ex trem e s tres s (co n ti n u ed ...)- 5 3 -

co n st ru ct i o n o f s ect i o n 4 0 2 (c)(3 )(B) t h atth e Co m m i s si o n er h as em

p l o y edi n ad m i n is t eri n g th i s p ro vi s i on o ver m an y y ears . Fo r t h e reas o n s d i s cu s s edab o v e, we co ncl u d e an dh o l dth ati n th e u n i qu e fact s an dci rcu m s t an ces o f t h i s cas e, p u rs u an tt o s ect i o n 4 0 2(c)(3 )(B) i two u l db e ag ai n s tequ i ty

o r g o o dco n s ci en ce t o d en y p et it i on ers a wai v er o f t h e 6 0 -d ay
ro l l o ver req u i rem en t . Acco rd i ng l y , we d o n o t s u s t ai n res p o n d en t ’ s d et erm i n at i o n t o treatth e t w o d i s tri b ut i o n s as i m m ed iat el y t ax ab l e. III. Ad d it i on al Tax on Earl y Di s tri b u t io n Res p o n d en td et erm i n edi n th e n o ti ce o f d efi ci en cy thatp et i t i o n ers are l i ab l e fo r t h e ad d it i on al t ax u n d er s ect i o n 7 2 (t ), wh i ch i s equ al t o 1 0 % o f t he p o rt i o n o f
an earl y d i s tri b u t i o n wh ich i s i ncl u d i b l e i n g ro s s i n co m e. W e h av e h el d t h atn o p o rt i on o f t h e t wo d i s tri b ut io n s i s i n cl u dedi n p et it i on ers ’ 2 0 11 g ro s s i n co m e. Acco rd in g ly , th e s ect i o n 7 2 (t ) ad d i t i o n al t ax i s i n ap p l i cab l e.

2 8 (...co n t i nu ed ) fo l l o w i n g th e l o s s o f h i s jo b ”); Pri v . Ltr. Ru l . 2 0 1 13 0 0 13 (J u l y 2 9 , 2 0 1 1) (wai v er g ran t edt o t ax p ay er wh o as sert edth atfai lu re t o co m p l et e t h e ro l l o ver was “ du e t o h i s d ep res s edco n d it i o n fo l l o w i n g h is s ep arat i o n fro m h i s s p o u s e”); Pri v . Ltr. Ru l
. 2 0 0 9 4 9 0 52 (Dec. 4 , 2 0 0 9 ) (wai v er g ran t edt o t ax p ay er wh o was “ ov erwh el m edb y h i s m o th er’ s d eat h an d s an ki n t o a d eep d ep res si o n du ri n g h i s p eri odo f g ri ev i n g ”).- 5 4 -

IV. Di v i den dIn co m e In th e n ot ice o f d efi ci en cy res p o nd en t d et erm i n edth atp et i t i o n ers h ad
u n rep o rt edd i v id en d i n co m e o f $ 4 0 , as rep ort edo n a Fo rm 1 0 9 9 -DIV, Di v id en d s
an d Di s tri b u t i o n s . Pet i t i o n ers d i dn o tas s i g n erro r t o th is d et erm i n at i on i n th ei r p et i t i o n as req u i redb y

Ru l e 3 4 (b )(4 ) an dh av e n o tad dres sedth i s i s s ue i n an y
m ean i n g fu l way

o n b ri ef, o th er t h an t o as s ertg en eral i zedo bject i o n s t o
res p o n d en t’ s p ro p o s edfi n d i n g s o f fact i n thi s reg ard . W e d eem p et i t i o n ers t o h av e wai v ed o r co n ced edth i s i ss u e. In an y ev en t , attri al M r. Tri m

m er ack n o wl ed g edth ath e h adp u rch as edth e
s t ocku s i n g h i s So ci al Secu ri ty n u m ber. Hi s t es t i m o ny

s u g g es t ed th ath i s o ri g i n al i n t en t i o n h adb een t o h o l dth e s t o ck o n l y as a n om i n ee fo r h i s th en -n ewb o rn s o n , wh o h ad n o ty etrecei v eda So ci al Secu ri ty n u m ber. Bu tp et it i on ers o ffered n o
ev i d en ce t o s up po rta fi n d i n g th ati n 2 0 1 1 the s t o ck was o wn edb y an y o n e o th er th an M r. Tri m

m er o r t hatthe d i v i d en d i n co m e b el o n g ed t o , o r was co ns tru ct i v el y recei v edb y , an y o ne o th er th an M r. Tri m m er. W e t h erefo re s u s t ai n res p o n d en t ’ s d et erm i n at i o n th atth e $ 4 0 o f un rep o rt ed d i v i d en d i n co m e i s i n cl u d i b l e i n p et i t i o n ers ’ 2 0 11 t ax ab le i nco m e.- 5 5 -

To refl ectthe fo reg o i n g , Anap p ro p ri at e o rd er wi ll b e i s s u ed , an dd eci s i o n wi ll b e en t eredu n d er Ru l e 1 5 5.