T.C. Mem o. 2 01 3- 25 8

UNITED STAT ES TAX COURT
BRADLEY C. REIFLER AND NANCY REIFLER, Peti ti on ers v. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 18 08 2- 10
. File d No ve m be r 13 , 20 13
.
On o r ab ou t Oct . 15 , 20 01 , th e ex te nd eddu e d at e fo r Ps ' 20 00 Fed eral in co m e ta x re tu rn , Ps s ub m it te d t o R 's An do ve r, Mas sa ch us et ts , Serv ic e Cen te r a joi ntFed eral in co m e ta x re tu rnfor 20 00 , si gn edun de r pe na lt ie s o f pe rjury by P-H, bu t n otby P-W
. Upo n re cei pt , th e se rv ic e cen te r da te -s ta m pe d t he return, m ad e ha nd writ te n m ark in gs in di cat in g am is si ng si gn atur e, an d m ai le d t he return b ackto Ps wi th a fo rm reque st in g t ha t P- W

si gn itan d t ha t Ps return i t t o t he servi ce ce nt er wi th in 20 da y s. Ps di d n otm ai l b ackth e 20 00 return wi th P-W's si gn atur e to th e se rv ic e cen te r as reque st ed
. On J ul y 29 , 20 02 , res po nd en t i ss ue d a"Tax pa y er Del in qu en cy Not ic e" t o P s. In res po ns e, Ps subm it te d asec on d jo in t Fe de ral in co m e ta x re tu rnfor20 00 . The s eco nd20 00 return was id en ti cal to th e fi rs t ex cep t t ha t i t was si gn edby bot h P s o pp os it e a d at e o f Aug
. 25 , 20 02 , andbo re n ei th er t he Oct. 1 5, 2 00 1, d at e st am p n orth e se rv ic e cen te r's m ark in gs on th e o rig in al return. Itwas re cei ve d b y th e se rv ic e cen te r on Sep t. 2 , 20 02 . Beg in ni ng on Ju ly 1, 20 05 , R ob ta in edfro m

Ps aser ie s o f co ns en ts ex te nd in g t he pe rio d o f- 2 -

[* 2] li m it at io ns on ass es sm en t an d c ol le ct io n fo r 20 00 un ti l J un e 3 0, 20 10 , a da te aft er t he May 17, 2 01 0, i ss ua nc e o f th e n ot ic e o f de fic ie nc y

co ve rin g P s' 2 00 0 t ax y ear. Ps all eg e th atth os e co ns en ts are i nv al idbe cau se th e I.R.C. s ec. 6 50 1( a) p eri odof l im it at io ns on as se ss m en t an d c ol le ct io n wi th res pe ctto Ps' 2 00 0 F ed eral in co m e ta x ex pi redon Oct. 1 5, 2 00 4, thr ee years af te r th ey fil edth e in it ia l 2 00 0 return.Held : Ps are es to pp edfro m rai si ng th e aff

irmativ e d efen se of th e p eri odof l im it at io ns with re ga rdto an y 20 00 de fic ie nc ie s; 20 00 rem ai ns op en forass es sm en t an d c ol le ct io n o f Fed eral in co m e ta x.

Kev in M. Fl ynn , for

pe ti ti on ers . Cari naJ. Ca m

po ba ss o, J an etF. App el , andErik a B. Co rm ie r, fo r res po nd en t.

MEMORANDUM OPINION HALPERN, Ju dg e: Bot h p art ie s h av e m ov edforpa rti al su m m ary jud gm en t (p et it io ne rs ' m ot io n, re sp on de nt 's m ot io n, o r, to ge th er, m ot io ns ). Each pa rty ob jects to th e o th er's m ot io n. Th e is su e co m m on to th e m ot io ns is whet he r th e se ct io n 6 50 1( a) th ree- y ear p eri odof l im it at io ns onass es sm en t an d c ol le ct io n 1
Unl es s o th erwi se in di cat ed , all sec ti on refe ren ces are t o t he Int ern al 1 Rev enue Co de in effe ctfor20 00 , andall Ru le refe ren ces are t o t he Tax C ou rt Ru le s o f Prac ti ce an d P ro cedur e.- 3 -

[* 3] (p eri odof l im it at io ns ) wit h re sp ectto pe ti ti on ers ' 20 00 Fed eral in co m e ta x ex pi redbe fo re re sp on de ntis su edth e st atut ory no ti ce o f de fic ie nc y

(no ti ce),
co ve rin g p et it io ne rs ' 20 00 -2 00 5 t ax ab le y ears , up on whi ch th is cas e is ba se d. Pet it io ne rs askth atwe gr an t t he ir m ot io n t o d ecl are 2 00 0 aclo se d year on th e gr ou ndth atth e p eri odof l im it at io ns ex pi redbe fo re re sp on de ntis su edth e n ot ic e. Res po nd en t as ks th atwe gr an t h is m ot io n t o d ecl are 2 00 0 s ti ll op en forass es sm en t
on th e g ro un d t ha t t he pe rio d o f li m it at io ns di d n otex pi re b efo re h is is su an ce o f th e n ot ic e. 2 Bac kg ro un d The pa rti es ba se th ei r m ot io ns on m at eri al fact s t ha t, fo r pu rp os es of t he
m ot io ns , are n otin di sp ut e, so th atth e p eri odof l im it at io ns is su e in vo lv es on ly qu es ti on s o f la w. There fo re, t ha t i ss ue is rip e fo r di sp os it io n b y su m m ary jud gm en t. See Ru le 12 1( b)
. The un di sp ut edm at eri al fact s ar e d eri ve d fr om th e m ot io ns an d v ari ou s affi da vi ts , dec la rat io ns , andex hi bi ts eit he r at ta ch edto th e m ot io ns or i nc or po rat ed th erei n b y

refe ren ce.
Pu rs ua ntto sec . 65 03 (a)( 1) , th e is su an ce o f a t im el y no ti ce o f de fic ie nc y 2 su sp en ds th e ru nn in g o f th e p eri odof l im it at io ns whi le th e Co m m is si on er i s pr oh ib it edfro m

m ak in g a ss es sm en ts as p ro vi de d i n s ec. 6 21 3( a); i.e., fo r 90 da y s or , if a p et it io n i s fi le d wi th th is Co urt, u nt il ou r de ci si on ha s b eco m e fi na l.- 4 -

[* 4] Prep arat io n a ndFil in g o f Pet it io ne rs ' 20 00 Return In20 00 an d fo r m an y

y ears pri orth eret o, Br ad le y C. Rei fle r (p et it io ne r) h ad
as hi s ce rti fie d p ub li c acc ou nt an t Dav idMeyrowit z, who se firm at t he ti m e, Lev in e, Lev in e & Me y

ro wit z, pr ep aredpe ti ti on ers ' Fed eral an d S ta te in co m e ta x returns . Thatfirm

pre pa redpe ti ti on ers ' 20 00 joi ntFed eral in co m e ta x re tu rn(20 00 return o r or ig in al 20 00 return)
. Mr. Me y ro wit z, on pe ti ti on ers ' be ha lf, re qu es te d a ndob ta in edfro m res po nd en t ex te ns io ns of the ti m e in whi ch to fil e th e 2 00 0 re tu rnun ti l Oct ob er 15 , 20 01
. Co ns is te ntwit h t he ir p ract ic e si nc e th ei r m arri ag e in 19 88 , pet it io ne rs de si redan d i nt en de d t o fi le a joi ntreturn fo r 20 00 , and , in de ed , th e 2 00 0 re tu rn was pre pa redas ajoi ntreturn (e .g., t he y sel ect eda fi li ng st atus of " m arri edfil in g joi ntreturn" , andth e return re po rte d i nc om e fro m act iv it ie s i n wh ic h b ot h pe ti ti on ers pa rti ci pa te d) . Also , con si st en t wi th he r pr io r y ears ' pr act ic e, Mrs
. Rei fle r au th or iz edpe ti ti on er t o fi le th e 2 00 0 re tu rnonhe r be ha lf. No ne th el es s, ap pa ren tl y

in hi s ru sh to m eetth e Oct ob er 1 5, 2 00 1, fi li ng de ad li ne forth e 2 00 0 return, p et it io ne r, ha vi ng ad de d h is si gn atur e to th atof M r. Meyrowi tz (as pr ep arer ), in ad ve rte nt ly fail edto ha ve Mrs . Rei fle r si gn th e return b efo re m ai li ng it to res po nd en t's And ov er, Ma ss ach us et ts , Serv ic e Cen te r (s erv ic e cen te r or- 5 -

[* 5] And ov er Se rv ic e Cen te r). The 20 00 return b or e n o d at e n ex t t o p et it io ne r's si gn atur e o r ne xtto th e sp ace f orMrs . Rei fle r's si gn atur e, an d i t b or e a d at e o f Octo be r 9, 2 00 1, n ex t t o M r. Meyrowi tz 's s ig na tu re. The Serv ic e Cen te r's Hand li ng of t he 20 00 Return So m et im e aft er i ts rece ip t o f th e 2 00 0 re tu rn , th e se rv ic e cen te r returne d i t t o pe ti ti on ers . Alth ou gh th ere i s n o d ire ctev id en ce ex pl ai ni ng why th e se rv ic e cen te r returne d t he 20 00 return t o p et it io ne rs , th e st an da rdAnd ov er Se rv ic e Cen te r op erat in g p ro cedur es ineffe ctat the ti m e in di cat e th at , as areturn re cei ve d a fte r th e u ne xt en de d due da te of Ap ril 15 , 20 01 , itwou ldha ve be en da te -s ta m pe d a s o f th e d at e o f rec ei pt , and , if ac cep te d fo r fi li ng , itwou ldha ve rece iv eda 13 -d ig it "d oc um en t l oc at ornu m

be r" (DLN) s ta m

pe d o n the to p ri gh t-h an d c orne r of th e fir stpa ge . If th e return was de em edde fect iv e an d, t he refo re, n otacce pt ab le for fil in g, t he servi ce ce nt er wo ul d n otha ve st am pe d aDLN onpa ge 1, an d, i f it sh owe d arefu nddu e (as di d t he 20 00 return) , th e se rv ic e cen te r wou ldha ve returne d t he ori gi na l re tu rnto pe ti ti on ers wit h aFo rm 35 31 , Reque stforMi ss in g In fo rm at io n o r Pap ers to Co m pl et e Return, ex pl ai ni ng why th e return c ou ldno t b e- 6 -

[* 6] acce pt edas ava li d F ed eral in co m e ta x re tu rn . The s erv ic e cen te r wou ldno t 3 ha ve ret ai ne d aco py of th e Fo rm 35 31 ch eck li stsen t t o p et it io ne rs . In cl ud edin th e Fo rm

35 31 ch eck li stof p ot en ti al return d efec ts is th e fai lu re by on e o r bo th tax pa y ers subm it ti ng a joi ntreturn t o s ig n t he return u nd er pe na lt ie s o f pe rjury; i.e., b el ow t he juratst at em en t. Bec au se th e 2 00 0 re tu rn 's s ol e de fectwas t ha t i t h adno t b een si gn edby bot h t ax pa y ers , th e se rv ic e cen te r al so wou ldha ve sen t t o p et it io ne rs a Not ic e 6 49 , YouFo rg otto Sig n Yo urReturn, whi chst at es , inpe rti ne ntpa rt: "We are se nd in g you r return b ackbe cau se itwasn 't si gn ed . W e can 't p ro ces s yourreturn wi th ou t yoursi gn atur e. Ple as e si gn y ou r return i n t he sp ace p ro vi de d a ndreturn i t wi th in 20 da y s. If t hi s i s a jo in t re tu rn , bo th hu sb an d a ndwife m us t s ig n i t."

If a re tu rnsh ows tax du e, th e se rv ic e cen te r do es no t re tu rnitto th e 3 ta xp ay er. Rat he r, itsen ds ou t a n ot ic e ad vi si ng th e ta xp ay er o f th e d efec t t og et he r wit h t he form s n eces sa ry to pe rfec t t he return. Re sp on de ntex pl ai ns th atth e reas on forth e se rv ic e cen te r's ret en ti on of t ax -due returns is th atret en ti on is ne ces sa ry in ord er t o m ak e th e as se ss m en t o f ta x wh ic h, i n turn, i s n eces sa ry in or de r to pro ces s t he acco m pa nyin g c he ck ; i .e., in ord er t o e st ab li sh a ta x l iabi li ty to whi chth e ch eckm ay

be ap pl ie d. If r es po nd en t wer e to return t o t he tax pa y er bo th th e ch eckan d the de fect iv e return, t he tax pa y er co ul d b e li ab le foran ad di ti on to tax forfai lu re t o t im el y pa y hi s o r he r ta x l iabi li ty. See s ec. 6 65 1( a)(2 ). W e fi ndth atto be a reas on ab le ex pl an at io n o f th e se rv ic e cen te r's di ve rg en t tre at m en t o f ta x- du e v ers us refu nd -due returns , andwe rejectpe ti ti on ers ' arg um en t th atitco ns ti tu te s an im

pe rm is si bl e m an ip ul at io n o f th e p eri odof l im it at io ns .- 7 -

[* 7] Serv ic e cen te r op erat in g p ro cedur es als o re qu ire d t ha t, upo n re cei ptof a n un si gn edin co m e ta x re tu rn(wit h n o o th er d efec ts ), se rv ic e cen te r pe rs on ne l p la ce an "S" in redin k a t t he to p l eft -h an d c orne r of pa ge 1 o f th e return. Th e p ur po se of th e red"S" was t o i nd ic at e th atth e return's on ly defec t was th atitwas m is si ng on e o r two si gn atur es an d t ha t i t was ne ces sa ry to sen d aNot ic e 6 49 to th e ta xp ay er(s ) al on g wi th th e return. Th e red"S" was n otrem ov edor c ov eredby
se rv ic e cen te r pe rs on ne l wh en th e return was sen t b ackto th e ta xp ay er(s ) fo r si gn atur e. Pet it io ne rs ' Hand li ng of t he 20 00 Return Dur in g t he Int ern al Rev enue Serv ic e (IR S) ex am in at io n o f pe ti ti on ers ' 20 00
- 20 05 returns , pet it io ne rs ' co un se l fu rn is he d t o t he rev enue ag en t co nduc ti ng th e ex am in at io n (r ev en ue ag en t) aco py of wh atbo th th e rev enue ag en t (a cco rd in g t o co un se l's rep res en ta ti on s) an d p et it io ne rs ' co un se l b el ie ve d t o b e th e 2 00 0 re tu rn . Co ns is te ntwit h s erv ic e cen te r po li cy ap pl ic ab le to un si gn edreturns , pag e 1 of t he 20 00 return p res en te d t o t he rev en ue ag en t b or e anori gi na l (r ai se d) da te st am p di sp la y in g a n Oct ob er 1 5, 2 00 1, d at e o f rec ei pt , andth ere was no 13 -d ig itDLN in th e to p ri gh t-h an d c orne r. Inc on si st en t wi th servi ce ce nt er p ol ic y of r eturni ng to ta xp ay ers on ly defec ti ve returns , th e 2 00 0 re tu rnth atpe ti ti on ers ' co un se l- 8 -

[* 8] pre se nt edto th e rev en ue ag en t co nt ai ne d b ot h p et it io ne rs ' si gn atur es alo ng wit h M r. Meyrowi tz 's s ig na tu re as pre pa rer. An ex pe rt r ep ort (r ep ort) p rep aredby an IRS "Ph y si cal Sci en ti st/In k Ch em is t" est ab li sh es th atpa ge 1 o f th e 2 00 0 re tu rnwas a lt eredby app lying op aqui ng flu idto hi de a red"S" in th e to p l eft -h an d c orne r, an d M rs . Rei fle r's
or ig in al si gn atur e was ad de d t o p ho to co py sig na tu res of p et it io ne r an d M r. Meyrowi tz on a ph ot oc op y of p ag e 2 of t he return. Th e rep ort al so est ab li sh es th at th ere wer e in de nt at io ns on pa ge 3 o f th e return i nd ic at in g t ha t (1 ) ch eckm ark s h ad be en m ad e o n t he li ne on pa ge 2 wh ere M rs . Rei fle r sh ou ldha ve si gn edan d d at ed itan d (2 ) bo th pe ti ti on er an d M r. Meyrowi tz ha d s ig ne d t he return i n t he ap pr op ria te pl aces on pa ge 2. Fi na ll y , th e rep ort es tabl is he s t ha t, o n t he ba si s o f th e p at te rnof t he st ap le ho le s i n t he return, p ag es 3 t o t he en d h adbe en st ap le d to ge th er m or e ti m es th an pa ge s 1 an d 2
. The rep ort, t hu s, es tabl is he s t ha t (1 ) so m eo ne us edop aqui ng flu idto hi de th e red"S" on pa ge 1 an d t he ch eckm ark s o n p ag e 2 of t he 20 00 return, (2 ) on ly pe ti ti on er an d M r. Meyrowi tz si gn edth e return (afactth atwas c on firm edby pe ti ti on ers ' co un se l's di sc ov ery, aft er a s earc h o f hi s fi le s, o f th e o rig in al pa ge 2, wit h p et it io ne r's an d M r. Meyrowi tz 's, b utno t M rs . Rei fle r's , ori gi na l s ig na tu res ),
an d (3 ) so m eo ne ha d re m ov edth e o rig in al pa ge 2 fr om th e return andsubs ti tu te d a- 9 -

[* 9] ph ot oc op y

of t ha t p ag e wit h t he ch eck m ark s o n the ori gi na l p ag e 2 si gn atur e li ne forMrs . Rei fle r hi dd enfro m vi ew, th ere app eari ng in st eadMrs . Rei fle r's
or ig in al si gn atur e. Pet it io ne r ackno wled ge d, i n a n a ffi da vi t d at edNov em be r 2, 2 01 1, h is
res po ns ib il it y

forth e fo reg oi ng return a lt erat io ns as f ol lo ws: I be li ev e th atsh ortl y

aft er t he ori gi na l 2 00 0 t ax return was returne d t o m e, I n eed eda co m

pl et el y si gn edreturn, i .e., a return t ha t i nc lu de d m y wife 's s ig na tu re, fo r so m e p ur po se ha vi ng no th in g t o d o wi th th e IRS. Itm ay

ha ve be ento sec ur e a l in e o f cre di t o r fo r pu rp os es of bu si ne ss fin an ci ng , or fo r so m e o th er b us in es s re as on . As a res ul t, I no w bel ie ve th atI co ve redth e ch eckm ark s o n p ag e 2 of t he return wit h a n o pa qu in g m at eri al , ph ot oc op ie d t he pa ge , andth en ask edm y wife to si gn th e co py of p ag e 2 in 20 01 . It ap pe ars th atwhi le I se pa rat el y

ke ptth e o rig in al of p ag e 2 , I att ach edth e p ag e 2 th atI ha d ph ot oc op ie d, an d h adask edm y wife to si gn , to th e res t o f th e return th atha d b een returne d t o m e b y th e IRS
. Pet it io ne r do es no t ex pl ai n t he us e o f op aqui ng m at eri al to ob sc ur e th e red"S" on pa ge 1 o f th e 2 00 0 re tu rnfurni sh edto th e rev en ue ag en t. Thu s, i t i s u nd is pu te d t ha t (1 ) Mrs . Rei fle r fai le d t o s ig n t he 20 00 return fil edonor abo utOcto be r 15 , 20 01 , and(2) th e se rv ic e cen te r tr eat edth atreturn a s a d efec ti ve return a ndsen t i t b ackto pe ti ti on ers in ord er t o o bt ai n t he m is si ng si gn atur e, in acco rd an ce wi th it s n orm al pro cedur es in su chcir cu m st an ces . It i s al so un di sp ut edth at(1) pe ti ti on ers di d n otha ve Mrs . Rei fle r si gn th e 2 00 0 re tu rn an d re fil e itwit h re sp on de ntas r eque st ed , (2) Kevi n M . Flynn , pet it io ne rs '- 10 -

[* 10 ] co un se l, m ai le d aco py of p ag e 1 of t he return wi th th e Oct ob er 1 5, 2 00 1, da te st am p t o t he rev en ue ag en t i n c on ne ct io n wi th th e 2 00 0- 20 05 au di t n o e arl ie r th an th e su m

m er o f 20 06 , andhe fir stfurni sh edto th e rev enue ag en t a c op y of t he
en ti re re tu rnwith t he Octo be r 15 , 20 01 , dat e st am p a ndth e p ho to co pi edpa ge 2
co nt ai ni ng Mrs . Rei fle r's ori gi na l s ig na tu re i n 2 00 6, 2 00 7, o r 20 08 in co nn ect io n wit h t he au di t, an d (3 ) pe ti ti on er an d M r. Flynn fir stpre se nt edto res po nd en t t he
or ig in al pa ge 2 o f th e 2 00 0 re tu rn , si gn edby pet it io ne r an d M r. Meyrowi tz , bu t
no t b y Mrs . Rei fle r, as anatt ach m en t t o a ffi da vi ts , dat edNov em be r 2, 2 01 1, wh ic h
ex pl ai ne d wh y

th atpa ge ha d n otbe en att ach edto th e 2 00 0 re tu rnin it ia ll y subm it te d t o t he rev en ue ag en t. 4 The Seco nd20 00 Return On J ul y 29 , 20 02 , res po nd en t i ss ue d a"Tax pa y er Del in qu en cy Not ic e" t o pe ti ti on ers . In re sp on se to th atno ti ce, p et it io ne rs fil eda se co ndjoi ntFed eral in co m e ta x re tu rnfor20 00 (se co nd20 00 return) . Bot h p et it io ne rs si gn edth at return andda te d i t Au gu st25 , 20 02 . Mr. Meyrowi tz si gn edas p rep areron Aug us t It i s u nd is pu te d fo r pu rp os es of t he m ot io ns th atbo th pe ti ti on er an d M r. 4 Fl ynn were u na ware t ha t the 20 00 return i ni ti al ly pres en te d t o t he rev en ue ag en t was no t t he ori gi na l 2 00 0 re tu rnan d t ha t, n otun ti l af te r th ei r rec ei ptof t he rep ort, whi chpro m

pt edth e in ve st ig at io n t ha t l edto th e d is co ve ry of t he ori gi na l p ag e 2 , di d M r. Flynn kn ow o f (an d p et it io ne r rem em be r) t he subs ti tu ti on of t he alt ered an d p ho to co pi edpa ge 2, wi th Mrs . Rei fle r's ori gi na l s ig na tu re, fo r th e o rig in al pa ge 2.- 11 -

[* 11 ] 19 , 20 02 . The ret urn s ho ws a h an dwr it te n n ot at io n o n p ag e 1 th atitwas rece iv edby resp on de nton Sep te m be r 2, 2 00 2. Ex cep t fo r th e ad di ti on of pe ti ti on ers ' an d M r. Meyrowi tz 's o rig in al si gn atur es (rep la ci ng pe ti ti on er's an d M r. Meyrowi tz 's o rig in al si gn atur es on th e o rig in al 20 00 return) , th e in se rti on of d at es op po si te pe ti ti on ers ' si gn atur es , anda ne w dat e o pp os it e Mr. M eyro wit z's si gn atur e, th e se co nd20 00 return a ndth e o rig in al 20 00 return a re i de nt ic al
. Ext en si on s o f th e Per io d o f Lim it at io ns The 20 00 -2 00 5 aud itbe ga n o n Ap ril 29 , 20 04 . There aft er, o n J ul y 1, 2 00 5, Mr. Me yro wit z (t he n re pr es en ti ng pe ti ti on ers in co nn ect io n wi th th e au di t)
ex ecu te d aFo rm

87 2- I, Co ns en t t o Ex te ndth e Tim e to Ass es s Tax As Well As Tax Attrib ut ab le to Ite m s o f a Partn ers hi p, ex te nd in g t he pe rio d o f li m it at io ns wit h
res pe ctto pe ti ti on ers ' 20 00 Fed eral in co m e ta x l iabi li ty to Dec em be r 31 , 20 06 . On Sep te m be r 15 , 20 06 , Ju ne 25 , 20 07 , andAug us t 6 , 20 08 , eit he r Mr. Fl ynn or pe ti ti on ers ex ecu te d F orm s 8 72 -I, whi ch , to ge th er, ex te nd edth e p eri odof li m it at io ns for

20 00 to Ju ne 30 , 20 10 . Accompan y in g t he ex ecu ti on of t he fir st two Fo rm s 8 72 -I were co ve r le tt ers fro m Mr. Me yro wit z (ac co m

pa nyin g the fir st
ex te ns io n) an d M r. Flynn (acc om pa nyin g t he sec on d e xt en si on ) in whi ch bo th arg ue d t ha t t he co ns en ts were i nv al idas am at te r of law b ecau se th ey

(an d, b y- 12 -

[* 12 ] im pl ic at io n, an y

to fol lo w) were (o r wou ldbe ) ex ecu te d a fte r th e p eri odof li m it at io ns for

20 00 ha d e xp ire d o n Oct ob er 1 5, 2 00 4. 5 Res po nd en t m ai le d t he no ti ce t o p et it io ne rs onMay 17, 2 01 0, b efo re the Ju ne 30 , 20 10 , exp ira ti on of t he las t ex te ns io n. Res id en ce Pet it io ne rs res id edin New Yorkwhen th ey fil edth e p et it io n. Dis cu ss io n I. Vali di ty of th e 2 00 0 R eturn Res po nd en t ar gu es th atth e 2 00 0 re tu rnwas a n i nv al idjoi ntreturn b ecau se itwas n otsi gn edby Mrs. Re ifl er u nd er p en al ti es of p erju ry . There fo re, i t d idno t st artth e ru nn in g o f th e p eri odof l im it at io ns for20 00 . Rath er, res po nd en t ar gu es th atth e se co nd20 00 return was th e o nl y va li d re tu rnth atpe ti ti on ers fil edfor 20 00 , andth atreturn (n otth e o rig in al 20 00 return) be ga n t he run ni ng of t he pe rio d of li m it at io ns for20 00
. Inarg ui ng th atth e o rig in al 20 00 return was anin va li d re tu rn , res po nd en t rel ie s upo n s ect io n 6 01 1( a) (t ax pa y ers m us t " m ak e a return * * * acco rd in g t o t he
It app ears th atMr. Me yro wit z's let te r, da te d J ul y 1, 2 00 5, was th e fi rs t 5 no ti fic at io n t o re sp on de ntth atpe ti ti on ers ha d s ub m it te d t he ori gi na l 2 00 0 re tu rn an d t ha t t he y

co ns id ereditto be th e return t ha t t rig ge redth e ru nn in g o f th e p eri od of li m it at io ns for20 00
.- 13 -

[* 13 ] form s an d re gu la ti on s p res cri be d b y th e Sec ret ary"); s ect io n 6 06 1( a) (" an y return * * * sh al l b e si gn edin acco rd an ce wi th form s o r reg ul at io ns pre sc rib edby th e Sec ret ary"); s ect io n 1 .60 11 -1 (b ), In co m e Tax Reg s. (r eturns th atfai l t o i nc lu de "t he in fo rm at io n re qu ire d t o b e in cl ud edth erei n * * * wil l n otbe acce pt edas m eet in g t he requi rem en ts of t he Co de ."); an d s ect io n 1 .60 13 -1 (a)( 2) , Inc om e Tax Reg s. (" A join t re tu rnof ahu sb an d a ndwife * * * s ha ll be si gn edby bot h sp ou se s." ). Res po nd en t al so cit es th e Fo rm 10 40 in stru ct io ns for

20 00 , at 5 2, whi chst at e: "Fo rm

10 40 is no t co ns id ereda va li d re tu rnun le ss y ousi gn it . If y ou are f il in g ajoi ntreturn, yoursp ou se m us t al so si gn ." Res po nd en t al so rel ie s upo n ou r de ci si on in Bear d v . Comm is si on er, 8 2 T.C. 7 66 , 77 7 (1 98 4) , aff'd , 79 3 F .2d 13 9 (6 th Cir . 19 86 ), whe rei n, re lying up on Supr em e Co urt p rece de nt , we li stfou r cri te riaforde te rm in in g " whe th er a d oc um en t i s s uf fic ie ntforst atut e o f li m it at io ns pu rp os es ", th e cri te rio n re le va ntto th e m ot io ns be in g t ha t " th e ta xp ay er m us t
ex ecu te th e return u nd er p en al ti es of p erjury ." See al so Zell erb ach Pap er Co . v. 6 Helv eri ng , 29 3 U.S. 1 72 , 18 0 (1 93 4) (ho ld in g t ha t t ax return i s n ota nu ll it y "i f it
Fo r pu rp os es of h is m ot io n, re sp on de ntacce pt s tha t t he on ly defec t i n t he 6 20 00 return was th e ab se nc e o f Mrs . Rei fle r's si gn atur e u nd er p en al ti es of p erju ry . The refo re, we n eedno t d is cu ss th e o th er t hr ee Be ardcri te riafora va li d re tu rn , i.e., th atth e return (1 ) co nt ai n " su ffi ci en t d at a to cal cu la te th e ta x l iabi li ty", (2) "p ur po rt t o b e a return" , and(3) rep res en t " an ho ne stan d re as on ab le att em ptto sa ti sf y th e req ui rem en ts of t he tax law"
.- 14 -

[* 14 ] pu rp orts to be a return, i s s worn t o a s s uc h * * * an d e vi nc es anho ne stan d ge nu in e en de av orto sat is fy th e la w"); Luca s v . Pil li odLum be r Co ., 28 1 U.S. 2 45 , 24 9 (1 93 0) ("Her e as se ntth atth e st atut e [o f li m it at io ns ] m ig htbe gi n t o ru n was co nd it io ne d upo n t he pre se nt at io n o f a return dul y swo rnto ."). See al so sec ti on

7 60 65 , whi ch ge ne ral ly pro vi de s t ha t a v al idreturn " sh al l co nt ai n o r be ve rif ie d b y a wri tt en de cl arat io n t ha t i t i s m ad e und er t he pe na lt ie s o f pe rjury." Pet it io ne rs co un te r th at , bec au se (1) th e 2 00 0 re tu rnwas i n " subs ta nt ia l
co m pl ianc e" wi th th e Bea rdrequi rem en ts fora va li d re tu rnan d (2 ) pe ti ti on ers in te nd edth atth e 2 00 0 re tu rnco ns ti tu te a joi ntreturn, i t m us t b e co ns id ereda va li d return fo r pe rio d- of

-li m it at io ns pu rp os es . The fi rs t ar gu m en t i s es se nt ia ll y an arg um en t t ha t the 20 00 return s at is fie d t he fir stth ree B eardrequi rem en ts (whi ch is
un di sp ut edforpu rp os es of t he m ot io ns ) an d fa il s t o a ckno wled ge th atex ecu ti on of a return u nd er p en al ti es of p erju ry is a se pa rat e an d d is ti nc t re qu ire m en t. The
se co ndarg um en t, h owe ve r, is supp orte d b y a li ne of c as es th atha ve crea te d an ex cep ti on to th e g en eral rul e th at , to ha ve a va li d re tu rn , itm us t b e si gn edby the
Co ng res s' 1 94 2 c ha ng e fro m requi rin g aswo rnst at em en t t o re qu iri ng a 7 si gn atur e u nd er p en al ti es of p erju ry was m ad e fo r ta xp ay er co nv en ie nc e. It was no t i nt en de d t o e ffec t an y subs ta nt iv e ch an ge in th e la w. See Vai ra v . Co m m is si on er, 5 2 T.C. 9 86 , 10 05 (19 69 ), aff'donth is is su e, rev 'd a ndrem an de d on ot he r gr ou nd s, 4 44 F.2d77 0 (3 d C ir. 1 97 1) ; Wall ace v . Comm is si on er, T.C. Mem o. 1 97 5- 13 3, 1 97 5 Tax Ct. M em o LEXIS 2 40 , at * 8- *9
.- 15 -

[* 15 ] tax pa y er (o r bo th tax pa y ers , in th e cas e o f a joi ntreturn) un de r pe na lt ie s o f pe rjury. Tha t ex cep ti on ho ld s tha t i f an"i nc om e ta x re tu rnis in te nd edby bot h sp ou se s as a joi ntreturn, t he ab se nc e o f th e si gn atur e o f on e sp ou se do es no t pr ev en t the ir i nt en ti on fro m be in g re al iz ed ." Est at e o f Cam pb el l v . Comm is si on er, 56 T.C. 1, 1 2 (1 97 1) . The ru le is ge ne ral ly app li edwhen on e sp ou se si gn s a jo in t return (u su al ly sig ni ng for bo th sp ou se s) an d i t i s s ho wn t ha t t he ot he r sp ou se ha s ta ci tl y co ns en te d t o t he joi ntreturn fi li ng . It i s, t he refo re, co m m on ly referre d t o a s th e ta ci t co ns en t ru le . See, e.g ., Henn en v. Co m m is si on er, 3 5 T.C. 7 47 , 74 8 (1 96 1) ; Harris v. Co m

m is si on er, T.C. Mem o. 1 96 1- 32 4, 1 96 1 Tax Ct. M em o LEXIS 22 , at * 11 . Becau se itis un di sp ut ed , for pu rp os es of t he m ot io ns , th atMrs
. Rei fle r co ns en te d t o p et it io ne rs ' fil in g o f a 2 00 0 jo in t re tu rn , pet it io ne rs arg ue th at , pu rs ua ntto th e ta ci t co ns en t ru le , th e 2 00 0 re tu rnco ns ti tu te d ava li d jo in t re tu rn . Res po nd en t re

jects th atarg um en t o n the gro un d t ha t co urts ha ve em pl oyed th e ta ci t co ns en t ru le ex cl us iv el y on th e Co m

m is si on er's be ha lf t o e nabl e th e Co m m is si on er t o h ol d the co ns en ti ng , no ns ig ni ng sp ou se joi nt ly liab le fora de fic ie nc y

ot he rwis e ex cl us iv el y

att rib ut ab le to th e si gn in g s po us e (o r ha ve refu se d t o s o e m

pl oy it o n t he gro un d o f la ckof s po us al co ns en t). Se e, e.g ., Esta te of Cam pb el l v . Comm is si on er, 5 6 T.C. at12 ; Hen ne n v . Comm is si on er, 3 5 T.C. at 74 8- 74 9; Fed erb us h v . Comm is si on er, 3 4 T.C. 7 40 , 75 7- 75 8 (1 96 0) , aff'd , 32 5- 16 -

[* 16 ] F.2d1 (2 d C ir. 1 96 3) ; Si m m s v . Comm is si on er, T.C. Mem o. 1 96 8- 29 8, 1 96 8 Tax Ct. M em o LEXIS 1 , at * 28 -* 29 , aff'dpe r cu ria m , 42 2 F .2d34 0 (4 th Cir
. 19 70 ); Ha rri s v . Comm is si on er, 1 96 1 Tax Ct. M em o LEXIS 2 2, at*1 0- *1 1. Th us , res po nd en t ar gu es th atth e ta ci t co ns en t ru le "h as no be ari ng onth e que st io n o f whe th er a Fo rm

10 40 , si gn edby one sp ou se bu t n otth e o th er, i s an in co m e ta x return fo r st atut e o f li m it at io ns pu rp os es ", al so cit in g c as el aw to th e eff ectth at "[s ]tatu te s o f li m it at io n t ha t b ar t he rig ht s o f th e g ov ern m en t ar e to be st ric tl y co ns tru edin it s fa vo r." See , e.g., E.I. Du Po ntDe Nem ou rs & Co . v. Dav is , 26 4 U.S. 45 6, 4 62 (19 24 ). Res po nd en t fu rth er ar gu es th atth e ta ci t co ns en t ru le can no t
ov erco m e th e req ui rem en t tha t, i n o rd er t o s ecu re t he be ne fitof ape rio d o f li m it at io ns barri ng Gov ern m en t co ll ect io n o f a t ax li ab il it y , "a t ax pa y er * * * m us t de m on st rat e 'm et ic ul ou s co m pl ia nc e * * * wit h a ll na m edco nd it io ns ' an d ap pl ic ab le requi rem en ts of t he Co de an d t he Treas ury Reg ul at io ns ." All nu ttv. Co m m is si on er, 5 23 F.3d40 6, 4 12 (4t h C ir. 2 00 8) (qu ot in g P il li odLum be r Co ., 28 1 U.S. at24 9) , aff'g T.C. Mem o. 2 00 2- 31 1. Inaneffo rt t o d efu se res po nd en t's att em ptto so li m itth e ta ci t co ns en t ru le , pe ti ti on ers cit e Down in g v . Comm is si on er, T.C. Mem o. 2 00 7- 29 1, 2 00 7 WL 27 68 75 4, at*9 , in whi chwe ad dr es se d the tax pa y er's co nt en ti on th athe an d h is wife fil eda joi ntreturn (o f whi ch res po nd en t h adno reco rd ) th attri gg eredth e- 17 -

[* 17 ] co m

m en cem en t o f th e p eri odof l im it at io ns . The t ax pa y er co ul d p ro du ce n o return c on ta in in g h is wife 's s ig na tu re, an d we f ou nd"n o c red ib le ev id en ce t o es tabl is h t ha t * * * [th e wif e] everin te nd edto fil e a * * * joi ntreturn wi th * * * [h er h us ba nd ] or

th atsh e ev en tac it ly con se nt edto th e fi li ng of ajoi ntreturn"
. Down in g v . Comm is si on er, 2 00 7 WL 27 68 75 4, at*1 0. Mo reo ve r, we co nc lu de d th atth e ta xp ay er fi le d n o re tu rnforth e y ear i n q ue st io n, an d, o n t ha t b as is , we reject edhi s af

firm at iv e d efen se th atth e p eri odof l im it at io ns ha d ru n. Id . at * 9. 8 Insupp ort o f th ei r arg um en t t ha t a jo in t re tu rnsi gn edby one sp ou se is a 8 va li d re tu rnforpe rio d o f li m it at io ns pu rp os es , pet it io ne rs als o c it e Whit e v . Co m m is si on er, T.C. Su m

m ary Opi ni on 20 02 -1 01 , in whi ch th e Co m m is si on er co nc ed edth ata return s ig ne d b y on ly one sp ou se is en ti tl edto joi ntreturn fi li ng st atus . W e h el d tha t t he ti m el y fil in g o f th atreturn n eg at edth e Co m m is si on er's at te m ptto im po se th e se c. 66 51 (a)( 1) ad di ti on to tax forfai lu re t o fi le ti m el y , whi chwas b as edon th e ta xp ay er's un ti m el y res ub m is si on (atth e Co m m is si on er's reque st ) of

th e return a t a l at er d at e. Pet it io ne rs ackno wled ge th at , as aSum m ary Opi ni on , Whi te "d oe s n otcarry pre ced en ti al weig ht ", b utth ey arg ue th atitis "p ro ba ti ve " i n tha t i t co nf irms th ei r arg um en t t ha t t he run ni ng of t he th ree- y ear li m it at io ns pe rio d i s t rig ge redby the fil in g o f an in it ia l i m pe rfec t, b ut "s ub st an ti al ly com

pl iant ", return, n otby the lat er re subm is si on of t he return a t t he Co m m is si on er's reque st . Whi le sec . 74 63 (b ) pr ecl ud es ou r Su m m ary Opi ni on s' b ei ng tre at edas pr eced en t i n a ny oth er ca se s, o ur Ru le s d o n otpro hi bi t t he cit at io n o f Su m m ary Opi ni on s, s o t ha t we m ay gi ve co ns id erat io n t o o urreas on in g a ndco nc lu si on s i n su ch op in io ns to th e ex te ntth atth ey are p ers ua si ve . Bec au se th e Co m

m is si on er co nc ed edth e v al id it y of ajoi ntreturn e xe cu te d by on ly one sp ou se , th e v al id it y of t he tax pa y ers ' return was no t a l it ig at edis su e in Whi te . There fo re, ev en if Whi te di d " carry pre ced en ti al weig ht ", itwou ldbe (co nt in ue d...)- 18 -

[* 18 ] Iness en ce, t he pa rti es rai se th e is su e o f whe th er the tac itco ns en t ru le is , effe ct iv el y

(1) a on e-ed ge d s wor d t ha t o nl y th e Co m m is si on er m ay

wiel d i n an effo rt t o i m

po se joi ntli ab il it y

on a no ns ig ni ng sp ou se or ( 2) a two -ed ge d s wor d th atth e ta xp ay er m ay

als o e m pl oy to i nv ok e a d efen se ba se d upo n t he ex pi rat io n of th e p eri odof l im it at io ns . In Do wni ng , si nc e we reject edth e ta xp ay er's affi rm at iv e d efen se onth e g ro un d t ha t h e h adfil edno return fo r th e y ear i n qu es ti on , we di d n otreac h t ha t que st io n. Inth is cas e, be cau se we are p ers ua de d t o d eci de th e m ot io ns in res po nd en t's fav orby his alt ern at iv e arg um en t, b as edup on th e p rin ci pl e o f equi tabl e es to pp el (s ee i nf ra), we l ik ewis e fi ndno ne edto res ol ve th e p art ie s' d is pu te ov er the ap pl ic ab il it y

of t he tac itco ns en t ru le . As we st at edin McLai ne v. Co m m is si on er, 13 8 T.C. 2 28 , 24 2 (2 01 2) (qu ot in g Whi te ho us e v . Ill . Cen t. R.R., 3 49 U.S. 36 6, 37 2- 37 3 (1 95 5) ): " [T]he b et te r co ur se is 'to ob se rv e th e wis e li m it at io ns on ou r (...co nt in ue d) 8 in ap po si te . The Co m

m is si on er's co nc es si on of an i ss ue in a cas e, es pe ci al ly a Tax Co urt ca se res ul ti ng in a no np rece de nt ia l Su m m ary Opi ni on , do es no t b in d h im for fu tu re ca se s as wou ldth e sa m e p os it io n s etfor th in a rev en ue rul in g o r ot he r fo rm of off ic ia l p ub li c g ui da nc e. See Do ve r Co rp . & Subs . v. Co m m is si on er, 1 22 T.C. 32 4, 3 50 (20 04 ); R au en ho rs t v . Comm is si on er, 1 19 T.C. 15 7, 1 70 -1 73 (20 02 ); s ee al so IBM C or

p. v . Uni te d S ta te s, 3 43 F.2d91 4, 9 19 (Ct . Cl. 1 96 5) (st at in g t ha t, as a g en eral rul e, a ta xp ay er "c an ne ve r av oi d l iabi li ty for a p ro pe r ta x b y sh owi ng th atot he rs ha ve be en tre at edge ne ro us ly, le ni en tl y , or e rro ne ou sl y by the Int ern al Rev enue Serv ic e")
.- 19 -

[* 19 ] fu nc ti on an d t o c on fin e o ur se lv es to de ci di ng on ly wha t i s n eces sa ry to th e di sp os it io n o f th e imm ed ia te cas e.'" II. Equ it ab le Est op pe l A. Dis cu ss io n Ass um in g a rg ue nd o t ha t t he 20 00 return was a va li d re tu rnan d tha t t he pe rio d o f li m it at io ns ex pi redbe fo re re sp on de ntis su edth e n ot ic e, res po nd en t arg ue s al te rn at iv el y

th atpe ti ti on ers are eq ui tabl y est op pe d fr om

rai si ng th e p eri od of li m it at io ns as a n a ffi rm at iv e d efen se to th e p ro po se d 2 00 0 d efi ci en cy . InMcC orkl e v . Comm is si on er, 1 24 T.C. 56 , 68 (20 05 ), we st at ed : "Equi tabl e es to pp el is a jud ic ia l d oc tri ne th atpre cl ud es a pa rty from de nyin g t ha t pa rty's o wn ac ts or r ep res en ta ti on s t ha t i nduc e an ot he r to actto hi s o r he r de tri m en t." W e h av e al so no te d t ha t the do ct rin e "i s b as edonth e g ro un ds of publ ic po li cy , fai r de al in g, g oo d fa it h, an d ju st ic e, an d i s d es ig ne d t o a idth e la w in th e ad m in is tra ti on of ju st ic e whe re wi th ou t i ts aidin jus ti ce m ig htres ul t." Uni on Tex . Int 'l Co rp . v. Co m

m is si on er, 1 10 T.C. 32 1, 3 27 (19 98 ). The p art y affi rm at iv el y

ass ert in g app li cat io n o f th e d oc tri ne "h as th e b ur de n o f pr ov in g a ll th e es se nt ia l el em en ts co ns ti tu ti ng th e es to pp el ." Id . Thu s, o n t he ba si s o f th e ag reedfact s, re sp on de ntbe ars th e b ur de n o f pr ov in g b y a pr ep on de ran ce o f th e ev id en ce ea ch of t he ele m en ts of e qu it ab le est op pe l. See Merk el v. Co m m is si on er,- 20 -

[* 20 ] 10 9 T.C. 4 63 , 47 6 (1 99 7) ("u su al m eas ur e o f pe rs ua si on requi redto pro ve a factinth is Co urt i s 'p rep on de ran ce o f th e ev id en ce'" ), aff'd , 19 2 F .3d84 4 (9 th Cir
. 19 99 ); s ee al so Ru le s 3 9, 1 42 (a). The Co urt o f App eal s fo r th e Sec on d C irc ui t, t he co urt t o wh ic h, b arri ng writ te n s ti pu la ti on to th e co nt rary, an ap pe al of t hi s ca se wou ldli e, se e se c. 74 82 (b )(1 )(A), (2 ), ha s s etfor th th e el em en ts of e qu it ab le est op pe l as fol lo ws. "(1 ) [T]here m

us t b e a fal se rep res en ta ti on or wro ng fu l m is le ad in g si le nc e; (2) th e err orm

us t o rig in at e in a st at em en t o f fac t, n otin op in io n o r a s ta te m en t o f la w; (3 ) th e o ne cla im in g t he be ne fit s o f es to pp el m

us t n otkn ow the tru e fac ts ; an d (4 ) th atsame pers on m us t be ad ve rs el y

affe ct edby the act s o r st at em en ts of the on e ag ai ns t who m anest op pe l i s cl ai m ed ." St ai r v. Un it edSta te s, 5 16 F.2d56 0, 5 64 (2dCir . 19 75 ) (quo ti ng Lig no s v . Uni te d St at es , 43 9 F .2d13 65 , 13 68 (2dCir . 19 71 )); acco rdMcC orkl e v . Comm is si on er, 12 4 T.C. at68 . Becau se th ere i s n o d is pu te as t o t he rel ev an t fa ct s, we t reat
res po nd en t's cla im

of e st op pe l as rai si ng anis su e o f la w. McCo rk le v. Co m m is si on er, 1 24 T.C. at 6 8. InCen tu ry

DataSy s., In c. v. Co m

m is si on er, 8 6 T.C. 1 57 , 16 6 (1 98 6) , whi ch , li ke th is cas e, in vo lv edth e Co m m is si on er's co nt en ti on th atth e ta xp ay er was equi tabl y

est op pe d fr om

ass ert in g t he pe rio d o f li m it at io ns as ade fen se to pr op os edde fic ie nc ie s, we s umm ari zedth e p rin ci pl es forap pl y in g the do ct rin e in- 21 -

[* 21 ] su ch a cas e as fol lo ws: "To b e es to pp edfro m ass ert in g t he st atut e o f li m it at io ns , pet it io ne r m

us t b e sh ownto ha ve tak en so m e act io n wh ic h l ed
res po nd en t t o p os tp on e u nt il aft er t he st atut e ex pi redth e is su an ce o f a d efi ci en cy no ti ce t ha t h e was ot he rwis e p rep aredto m ai l o n ati m el y ba si s." W e ag ree wi th res po nd en t t ha t t he for eg oi ng cri te riaforth e ap pl ic at io n o f equi tabl e es to pp el he rei n a re s at is fie d.

1. The re Was a Fa ls e Rep res en ta ti on or M is le ad in g S il en ce. Inacco rd an ce wi th it s s tand ardop erat in g p ro cedur es for pro ces si ng joi nt returns wit h o nl y

on e si gn atur e, th e And ov er Se rv ic e Cen te r da te -s ta m pe d p ag e 1 of th e 2 00 0 re tu rnup on rece ip t, p la ceda red"S" on th e sa m e p ag e in di cat in g a m is si ng si gn atur e, an d p la cedch eckm ark s, o n p ag e 2 , on th e li ne for Mrs
. Rei fle r's m is si ng si gn atur e. W e fu rth er as su m e th at , in acco rd an ce wi th th os e sa m e o pe rat in g p ro cedur es , th e se rv ic e cen te r, th ereupo n, m ai le d t he 20 00 return ba ckto pe ti ti on ers to ge th er wi th a Fo rm 35 31 , li st in g t he de fectin th e return (i n th is cas e, th e la ckof M rs . Rei fle r's si gn atur e), an d aNot ic e 6 49 sp eci fic al ly reque st in g t ha t M rs . Rei fle r "s ig n * * * [th e] retu rnin th e sp ace p ro vi de d a nd return i t wi th in 20 da y s." 9 It i s u nd is pu te d t ha t t he servi ce ce nt er re tu rn edth e 2 00 0 re tu rnto 9 pe ti ti on ers , and , alt ho ug h t he re i s n o c on firm at io n i n t he fil e th atth e se rv ic e cen te r (co nt in ue d...)- 22 -

[* 22 ] Pet it io ne rs ne ve r returne d t he ori gi na l 2 00 0 re tu rnto th e se rv ic e cen te r. Hav in g n o re co rdof p et it io ne rs ' ha vi ng fil eda return fo r 20 00 , res po nd en t, o n J ul y 29 , 20 02 , m ai le d t o p et it io ne rs a "Tax pa y er Del in qu en cy Not ic e" i nf

orm in g t he m th atth ey ha d n otfil eda 20 00 return. In re sp on se to th atno ti ce, o n S ep te m be r 2, 1 0 20 02 , pet it io ne rs fil edth e se co nd20 00 return, i de nt ic al to th e o rig in al 20 00 return, bu t wi th th e o rig in al si gn atur es of b ot h p et it io ne rs , dat edAug us t 2 5, 2 00 2, an d wit h M r. Meyrowi tz 's s ig na tu re as pre pa rer, d at edAug us t 1 9, 2 00 2. Th ere i s n o ev id en ce, n ordo pe ti ti on ers cla im , th at , whenth ey fil edth e se co nd20 00 return, th ey ad vi se d re sp on de ntth atth atreturn- -co nt em po ran eo us ly dat edby bot h o f (...co nt in ue d) 9 acco m pa ni edit s re tu rnof t he 20 00 return t o p et it io ne rs wit h e it he r a Fo rm 35 31 or a Not ic e 6 49 , pet it io ne rs do no t d is pu te th at , pu rs ua ntto it s n orm al op erat in g pr oc edur es , th e se rv ic e cen te r wou ldha ve m ai le d b ot h d oc um en ts to pe ti ti on ers . Und er t he pre su m

pt io n o f of

fic ia l re gu larit y , cou rts pre su m e, in th e ab se nc e o f cl ear e vi de nc e to th e co nt rary, thatpubl ic off ic ers ha ve pro pe rly dis ch arg edth ei r of fic ia l dut ie s. See Uni te d S ta te s v . Che m . Fou nd ., Inc ., 27 2 U.S. 1 , 14 -1 5 (1 92 6)
. Bec au se th ere i s n o e vi de nc e th atwou ldreb utth e ap pl ic at io n o f th e p res um pt io n he rei n, we as su m e fo r pu rp os es of t he m ot io ns th atth e se rv ic e cen te r m ai le d b ot h a Fo rm 35 31 an d aNot ic e 6 49 to pe ti ti on ers to ge th er wi th th e 2 00 0 re tu rn . Mo reo ve r, itis il lo gi cal to ass um e o th erwi se ; i .e., to ass um e th atres po nd en t returne d t he 20 00 return t o p et it io ne rs wit h n o e xp la na ti on as t o wh y itwas b ei ng returne d a ndno in st ru ct io ns as t o wh atto do wit h i t. Alt ho ug h t he pa rti es ha ve no t fu rn is he d aco py of th e "Tax pa y er 1 0 Deli nq ue nc y

Not ic e" m ai le d t o p et it io ne rs , itis no rm al ly the fun ct io n o f su ch a no ti ce t o i nf

orm th e ta xp ay er t ha t an un fil edreturn i s o ve rdue . See, e.g ., Dick ow v. Un it edSta te s, 6 54 F.3d14 4, 1 47 (1s t Ci r. 20 11 ).- 23 -

[* 23 ] th em

an d b y Mr. Me yro wit z--c on st itut eda co py of th e return, re cei ve d b y res po nd en t 1 0 m on th s ea rli er, o n Oct ob er 1 5, 2 00 1, wh ic h re sp on de ntha d returne d t o t he m

forMrs . Rei fle r's si gn atur e. Fo r al l i nt en ts an d p ur po se s, t he
se co nd20 00 return, fi le d i n re sp on se to th e "Tax pa y er Del in qu en cy Not ic e",
wou ldha ve ap pe aredto res po nd en t t o b e p et it io ne rs ' de li nq ue nt ly file d, o rig in al 20 00 return. It was no t u nt il res po nd en t re cei ve d M r. Meyrowi tz 's J ul y 1, 2 00 5, 1 1 le tt er ac co m

pa nyin g the fir stFo rm

87 2- I, whi ch ex te nd edth e p eri odof l im it at io ns fo r 20 00 to Decem

be r 31 , 20 06 , th atres po nd en t was m ad e aware of p et it io ne rs ' cl ai m th atth ey ha d fi le d t he ir 2 00 0 re tu rnon Octo be r 15 , 20 01 , andth at , th eref or e, th e Fo rm 87 2- I was in va li d b ecau se itwas e xe cu te d a fte r th e p eri odof l im it at io ns fo r 20 00 ha d e xp ire d o n Oct ob er 1 5, 2 00 4. W e fi ndth atto ge th er (1 ) pe ti ti on ers ' fai lu re t o re tu rnth e o rig in al 20 00 return t o re sp on de ntwit h t he ad di ti on of M rs . Rei fle r's si gn atur e, as res po nd en t
Pet it io ne r fi le d a n a ffi da vi t i n wh ic h h e al le ge s tha t " th e IRS reque st eda 1 1 co py of m

y Fo rm 10 40 for* * * 2 00 0" , andth at , whenhe sen t i t, h e "kne w th atit was on ly a cop y , andth at* * * [h is ] or ig in al return h adbe enti m el y fil edwit h t he IRS o n o r be fo re Oct ob er 1 5, 2 00 1." Accep ti ng , as we m us t fo r pu rp os es of de ci di ng th e m ot io ns , th e g enui ne ne ss of p et it io ne rs ' be li ef re ga rd in g t he st atus of th e se co nd20 00 return a s m erel y a co py of th e o rig in al 20 00 return, we n ot e th atit is irr el ev an t i n d et erm in in g re sp on de nt 's ri gh t t o i nv ok e equi tabl e es to pp el he rei n. The qu es ti on is whet he r pe ti ti on ers ' act io ns an d/ orsi le nc e reg ard in g t ha t re tu rn , in no cen t o r no t, m is le d re sp on de ntin to be li ev in g i t was pe ti ti on ers ' de li nq ue nt ly fil ed , ori gi na l 2 00 0 re tu rn .- 24 -

[* 24 ] ha d re qu es te d, an d (2 ) th ei r subs eque ntfil in g o f th e se co nd20 00 return, whi ch(A) on it s fa ce, ap pe aredto be pe ti ti on ers ' de li nq ue nt , ori gi na l 2 00 0 re tu rn an d (B ) was un acco m

pa ni edby any

no ti ce t ha t i t was a co py of a re tu rnfil edon Octo be r 15 , 20 01 , con st itut e b ot h (1 ) a fal se rep res en ta ti on th atth e se co nd20 00 return was th e o rig in al ly file d 2 00 0 re tu rnan d (2 ) a wro ng fu l, m is le ad in g s il en ce reg ard in g t he ex is te nc e an d p rio r fi li ng of t he ori gi na l 2 00 0 re tu rn . Had pe ti ti on ers m ai le d t he ori gi na l 2 00 0 re tu rnba ck to res po nd en t wi th in 20 da y s o f
rece ip t, as reque st ed , res po nd en t wo ul d h av e b een ab le to ti m el y reque sta co ns en t to ex te ndth e p eri odof l im it at io ns for20 00 ba se d upo n t he Octo be r 15 , 20 01 , fil in g d at e o f th atreturn. Be cau se th ey di d n otdo so , res po nd en t was un aware th at th atli m it at io ns pe rio d wo ul d e xp ire on Octo be r 15 , 20 04
. 1 2 Pet it io ne rs rejectas " m eri tl es s" res po nd en t's arg um en t t ha t t he ir a ct io ns (fi li ng a ne wly si gn edan d d at edreturn i n re sp on se to th e se rv ic e cen te r req ue st th atth ey pe rfec t an d re tu rnth e o rig in al 20 00 return) furni sh gro un ds forap pl y in g equi tabl e es to pp el he rei n. Pe ti ti on ers cit e o ur no np rece de nt ia l Su m

m ary Opi ni on in Whi te v. Co m

m is si on er, T.C. Su m

m ary Opi ni on 20 02 -1 01 ; t he y als o c it e
W e d o n otco ns id er re le va ntth e ex te ntto whi ch th e rev en ue ag en t m ay 1 2 ha ve be en m is le d b y

pe ti ti on ers ' in it ia l p ro ffer in g o f th e 2 00 0 re tu rnwith t he al te redpa ge s 1 an d 2 as t he ir o rig in al 20 00 return b ecau se th atoc cu rredaft er t he pe rio d o f li m it at io ns for20 00 ha d a lre ady ex pi red
.- 25 -

[* 25 ] Blo un t v . Comm is si on er, 8 6 T.C. 3 83 (19 86 ). In Whi te , we tre at edth e ta xp ay er's ori gi na l, t im el y fil edreturn- -an d n otth e su bs eque nt ly refil edan d
res ig ne d c op ie s s ub m it te d a t t he Co m m is si on er's reque st --as th e rel ev an t re tu rnin ho ld in g t ha t t he tax pa y er was no t l iabl e fo r an ad di ti on to tax forfai lu re t o t im el y fil e u nd er s ect io n 6 65 1( a)(1 ). In B lo un t, t he tax pa y ers fai le d t o a tt ach a Fo rm 1 3 W -2 , W ag e an d Tax Sta te m en t, t o t he ir r eturn. We rejecte d t he Co m m is si on er's arg um en t t ha t " itis lo gi st ic al ly im po ss ib le for

hi m to ret ai n t he return fi le d wi th ou t a Fo rm W -2 whi le he no ti fie s t he tax pa y er o f th e o m is si on an d await s t he ta xp ay er's res po ns e." Whil e rec og ni zi ng th e "fo rm id ab le " ad m in is tra ti ve tas k
co nf ro nt in g t he Co m

m is si on er i n s uc h c irc um st an ces , we hel d t ha t " on ce a re tu rn ha s b eenfil ed(oris de em edfil ed ), th e p eri odof l im it at io ns on ass es sm en t b eg in s to run "; itdo es no t b eg in to run fro m th e fi li ng da te of t he res ub m it te d re tu rn (wh ic h, i n B lo un t, o ccu rredsev en day s af te r th e se rv ic e cen te r m ai le d t he return t o th e ta xp ay ers ). See Bl ou ntv. Co m m is si on er, 8 6 T.C. at38 5, 3 87 -3 88
. Inbo th Whi te an d B lo un t, t he ori gi na ll y subm it te d re tu rnwas e it he r ret ai ne d b y

th e se rv ic e cen te r orsh ortl y returne d b y

th e ta xp ay er t o t he servi ce cen te r, pr es um ab ly beari ng th e d at e st am p e vi de nc in g t he da te on whi ch itin it ia ll y Eve n t ho ug h s ec. 7 46 3( b) pre cl ud es ou r Su m m ary Opi ni on s' b ei ng tre at ed 1 3 as pre ced en t fo r an y

ot he r cas e, we ha ve ch os ento di sc us s i t h ere o nl y to rei te rat e ou r pr ev io us po in t t ha t i t i s i napp os it e.- 26 -

[* 26 ] ha d b een rece iv ed . In t hi s ca se , pet it io ne rs ke ptth e o rig in al , dat e-s ta m pe d return tha t t he servi ce ce nt er h adreturne d t o t he m un ti l af te r th e p eri odof li m it at io ns , m eas ur edfro m th e in it ia l s ub m is si on da te , hadex pi red . Had pe ti ti on ers res ub m it te d t ha t re tu rnwit hi n 2 0 d ay s as reque st edby the And ov er Serv ic e Cen te r, res po nd en t wo ul d h av e b een actua ll y or c on st ru ct iv el y

ale rte d t o th e o rig in al fil in g d at e, as he was i n b ot h Whi te an d B lo un t, wh en th ere was st il l
am pl e ti m e in whi ch to is su e a n ot ic e o f de fic ie nc y or o bt ai n aco ns en t ex te nd in g th e p eri odof l im it at io ns . Noton ly w as res po nd en t n otso ale rte d i n t hi s ca se ; h e was m is le d b y

th e su bs eque ntfil in g, o n S ep te m be r 2, 2 00 2, o f wha t ap pe aredto be
an ori gi na l re tu rn . He was m is le d i nt o b el ie vi ng th atth atli m it at io ns pe rio d wo ul d
no t ex pi re u nt il Sep te m

be r 2, 2 00 5. 1 4 2. The Erro r Orig in at edin a St at em en t o f Fac t. Res po nd en t's erro r in all owi ng th e p eri odof l im it at io ns to ex pi re b efo re so li ci ti ng co ns en ts to ex te ndth atpe rio d was ba se d o n h is m is ta ke n b el ie f, in du ced by pet it io ne rs ' act io ns an d i na ct io ns (i.e ., by th ei r subm is si on of wh atap pe aredto Pet it io ne r's reas on forret ai ni ng an d a lt eri ng th e o rig in al 20 00 return 1 4 ("s ho rtl y aft er t he ori gi na l 2 00 0 t ax return was returne d t o m e, I n eed eda co m pl et el y si gn edreturn * * * forso m e p ur po se ha vi ng no th in g t o d o wi th th e IRS" ) is irr el ev an t. His ret en ti on of t ha t re tu rn , forwhat ev er re as on , un ti l af te r th e pe rio d o f li m it at io ns for20 00 ha d e xp ire d c oupl edwit h p et it io ne rs ' subs eque nt fil in g o f a s eco nd , pu rp orte dl y ori gi na l 2 00 0 re tu rnwas wh atcau se d re sp on de ntto al lo w th e li m it at io ns pe rio d t o e xp ire
.- 27 -

[* 27 ] be a de li nq ue nt , ori gi na l jo in t re tu rnfor20 00 wit h o rig in al si gn atur es an d
co nt em po ran eo us da te s co up le d wi th th ei r fai lu re t o a le rt r es po nd en t t o t he
ex is te nc e o f th e p rev io us ly file d 2 00 0 re tu rn ), th atth e se co nd20 00 return was a de li nq ue nt , ori gi na l 2 00 0 re tu rn . Clea rly, resp on de ntwas m is le d b y pe ti ti on ers as to th e fac ts reg ard in g t he co m m en cem en t o f th e p eri odof l im it at io ns for20 00
. The re was no erro ne ou s o pi ni on or m is st at em en t o f la w up on whi ch res po nd en t rel ie d t o h is de tri m en t.

3. Res po nd en t Was Un aware of the Fact s. Bec au se th e And ov er Se rv ic e Cen te r ha d re tu rn edth e o rig in al 20 00 return to pe ti ti on ers an d, t he refo re, h adno reco rdof i ts ha vi ng be en fil ed , res po nd en t
was un aware th atth e se co nd20 00 return, wh ic h h adth e ap pe aran ce o f a de li nq ue ntori gi na l re tu rn , was n otth e fi rs t an d o nl y return t ha t p et it io ne rs ha d fil edfor 20 00
. Pet it io ne rs arg ue th atan y di sa dv an ta ge th atres po nd en t p erce iv es fro m ha vi ng fai le d t o re ta in a co py of th e o rig in al 20 00 return o r th e Fo rm 35 31 ch eck li stof r eturn d efec ts th atwou ldha ve be en m ai le d t o p et it io ne rs was a di sa dv an ta ge cau se d b y

th e se rv ic e cen te r. Pet it io ne rs no te th atth e se rv ic e cen te r "co ul d h av e m ad e anen try in p et it io ne rs ' tax acco un t fo r * * * 2 00 0 i nd ic at in g t ha t th e Fo rm 10 40 was re tu rn edto pe ti ti on ers du e to th e m is si ng si gn atur e * * * [bu t- 28 -

[* 28 ] th atit ] ch os e n otto do so ." Pet it io ne rs th en st at e th atth e Aus ti n S erv ic e Cen te r pr oc es se s jo in t re tu rn s t ha t l ackon e sp ou se 's s ig na tu re an d a sk s t he
no ns ig ni ng sp ou se "t o e xe cu te a de cl arat io n." They furt he r st at e: "Itis well
kn own th atot he r Serv ic e Cen te rs fol lo w th e sa m e p ract ic e." Pet it io ne rs ha ve no t ca ll edth e Co urt's att en ti on to an y pro vi si on of t he In te rn al Rev enue Man ua l o r ot he r in te rn al IRS g ui da nc e th atm an da te s t he servi ce cen te r pr oc edur es th ey

de sc rib e. Mo reo ve r, we do no t fi ndth e And ov er Se rv ic e Cen te r's fai lu re t o re ta in a co py of th e 2 00 0 re tu rnto be ne gl ig en t o r un reas on ab le
. It r eas on ab ly ant ic ip at edth atpe ti ti on ers wou ldco m pl y with i ts reque stto m ai l ba ckth e o rig in al 20 00 return s ig ne d b y Mrs . Rei fle r wit hi n 2 0 d ay s. Itth en co ul d ha ve eit he r ne wly da te -s ta m pe d the return o r rec or de d t he Octo be r 15 , 20 01 , fil in g da te alr ead y

st am pe d o n p ag e 1 an d t he n p ro ces se d t he return. Me as ur edfro m ei th er d at e, res po nd en t wo ul d h av e h adam pl e ti m e in whi ch to eit he r is su e a no ti ce o f de fic ie nc y

or o bt ai n a n e xt en si on be fo re the pe rio d o f li m it at io ns for 20 00 ex pi red . Peti ti on ers ' fai lu re t o m ai l b ackth e return a nd , so m e m on th s l at er, to , in st ead , fil e wha t ap pe aredto be a de li nq ue nt , ori gi na l 2 00 0 re tu rnwas wh at
cau se d re sp on de ntto all ow t he pe rio d o f li m it at io ns to ex pi re. The di sa dv an ta ge to res po nd en t was cau se d b y pe ti ti on ers , no t b y

th e se rv ic e cen te r.- 29 -

[* 29 ] 4. Res po nd en t Was Ad ve rs el y Affect edby Peti ti on ers ' Acti on s. The no ti ce o f de fic ie nc y

li st s al m os t $ 17 m il li on of a dju st m en ts for20 00 , two of wh ic h (t he di sa ll owa nc e o f (1 ) a $ 12 ,20 7,8 10 de du ct io n, p lu s t he sec ti on 66 62 accu racy-rela te d p en al ty app li cab le th eret o, an d (2 ) an ad di ti on al de du ct io n of $1 10 ,35 6) pe ti ti on ers ha ve co nc ed edsh ou ldwe de te rm in e th atth e p eri odof li m it at io ns for

20 00 rem ai ns op en . Thu s, i t i s b ey on d d is pu te th atres po nd en t was ad ve rs el y affe ct edby pet it io ne rs ' act io ns , whi ch cau se d re sp on de ntto all ow t ha t pe rio d o f li m it at io ns to ex pi re. B. Co nc lu si on Pet it io ne rs are es to pp edfro m rai si ng th e aff

irmativ e d efen se of t he pe rio d o f li m it at io ns with re ga rdto an y 20 00 de fic ie nc ie s. Th eref or e, 20 00 rem ai ns anop en y ear. Re sp on de nt 's m ot io n wi ll be gra nt ed , andpe ti ti on ers ' m ot io n wi ll be de ni ed
. An ap pr op ria te ord er wi ll be is su ed
.