T.C. M em o . 2 0 1 7 -2 7

UNITED STATES TAX COURT
JOHN C. NOYES, Pet i t i o n er v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 2 7 2 94 -1 4 L. Fi l edFeb ru ary 1 , 2 0 1 7
.

J o h n C. No y es , p ro s e. Hal v o r R. M el o m , fo r res p o n d en t .

M EM ORANDUM FINDINGS OF FACT AND OPINION LAUBER, J u d g e: In th is co l l ect i o n du e p ro ces s (CDP) cas e, p et it i o n er
s eek s rev i ew p u rs u an tt o s ect i o n s 6 3 2 0 (c) an d6 3 3 0(d )(1 ) o f t h e d et erm i n at i o n b y t h e In t ern al Rev en u e Serv i ce (IRS o r res p o n d en t ) t o up h o l dth e fi l i n g o f a n o t i ce- 2
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[* 2 ] o f Fed eral t ax l i en (NFTL). 1 Th e s o l e ques t i o n fo r d eci s i on i s wh et h er t h e IRS s et t l em en to ffi cer p ro p erl y v eri fi edthatn o t ices o f d efi ci en cy fo r t h e rel ev an t y ears were m ai l edt o p et i t i o n er at h i s l as tkno wn ad dres s . W e h ol dth atth e
s et t l em en to ffi cer p ro p erl y v eri fi edth es e fact s , an dwe wi ll acco rd in g l y s u st ai n (wi t h o n e ex cep t i o n n o t edb el o w) t h e IRS co l l ect i o n act i o n. FINDINGS OF FACT So m e o f t h e fact s h av e b een s ti p u lat ed an dare s o fo u n d. Th e s t ip u l at i o n o f fact s an dth e at t ach ed ex h i b i ts are i n co rp o rat ed b y th is referen ce. Pet i t i o n er res i dedi n Cal i fo rn i a wh en h e fi l edh i s p et i t i o n . Pet i t i o ner l as tfi l ed a Fed eral i n co m e t ax retu rn 2 5 y ears ag o , fo r 1 99 1 . On t h at1 9 9 1 retu rn h e s h o wedas h i s ad dres s an ad dres s i n Lo n g Beach , Cal i fo rn i a (Lo n g Beach ad d res s ). Pet i t i o n er s ub seq u en t l y m o v ed , b u th e d idn o t i n fo rm th e IRS o f h i s n ew ad dres s (b y fi l i ng a Fed eral i n co m e t ax retu rn o r o t h erwi s e) u n t i l 2 0 1 1 . Ats o m e t i m e duri n g 2 0 1 1 h e n o t i fi edth e IRS o f h is cu rren tad dres s i n To rran ce, Cal i fo rn i a (To rran ce ad dres s ). Atal l t i m es b efo re 2 0 1 1 p et i t i o ner’ s l as t kn o wn ad dres s , as i tap p eared i n IRS reco rd s an dco m p u t er fi l es , was t h e Lo n g Beach ad d res s .

1 Al l s t atut o ry

referen ces are t o th e In t ern al Rev en u e Co de i n effect atal l rel ev an t t i m es . W e ro u n dal l m o n et ary am o u n t s t o t h e n eares td o l lar.- 3
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[* 3 ] Am o n g th e m an y y ears fo r wh i ch p et i t io n er fai l edt o fi le ret urn s were 2 0 0 0
- 2 0 0 6 , th e rel ev an tt ax y ears h ere. Fo r each o f t h es e y ears t h e IRS p rep ared , o n th e b as i s o f t h ird -p art y i n fo rm at i o n rep o rt s , a s ub s t i tu t e fo r retu rn (SFR) t hatm etth e req u i rem en t s o f s ect i o n 6 0 2 0 (b ). Th e IRS p rep ared n o t i ces o f d efi ci en cy b as edo n t h es e SFRs , d et erm i ni ng a t ax d efi ci en cy an dad d i t i o ns t o t ax fo r each y ear. Th e ag g reg at e am o u n to f t h e d efi ci en ci es ex ceed s $ 6 0 ,0 0 0
. Th e IRS m ai ledthe n o t i ces o f d efi ci en cy t o p et it io n er at h i s Lo n g Beach ad d res s . Th e n o t ices o f d efi ci en cy fo r 2 0 00 -2 0 0 4 were d at edJ u n e 1 1 , 2 0 0 7 ; th e
n o t i ces o f d efi ci en cy fo r 2 0 0 5 an d2 0 0 6 were d at edDecem b er 1 4 , 2 0 0 9 . Th e U.S. Po s tal Serv i ce (USPS) ret urn edal l o f t h es e n o t i ces t o t h e IRS as u nd el i v erab l e. Aft er p et i ti on er fai l edt o p et i t i on th i s Co u rtt i m el y fo r red et erm i nat i on o f th e d efi ci en ci es s h o wn o n thes e n o t i ces , th e IRS as s es s edth e t ax fo r 2 0 00 -2 0 0 6 p l u s ap p li cab l e ad d it i o n s t o t ax an di n t eres t . OnAp ri l 8 , 2 0 1 4 , i n an effo rtt o co l l ect t h es e u np ai dl i ab i l i t i es , th e IRS s en t p et i t i o n er b y cert i fi edm ai l a Fi n al No t i ce o f Fed eral Tax Li en an dNo t i ce o f Yo u r Ri g h t t o a Heari n g . Th i s n ot i ce was s en tt o p et i t i o n er’ s To rran ce ad dres s , o f wh i ch h e h ad n o t i fi edth e IRS i n 2 0 1 1. Pet i t i o ner t i m el y

req u es t eda CDP h eari n g . He as s ert edth ath e d i d n o trecei v e t h e n ot ices o f d efi ci en cy an d al l eg edth at“ t h e IRS n ev er creat edo r m ai l edt o
m e t h e s t atu t o ry

n o ti ces o f d efi ci en cy ” fo r 2 0 0 0 -2 0 0 6 . Ap artfro m t h es e co n t en -- 4
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[* 4 ] t i on s , h e d i dn o trai s e du ri n g h i s CDP h eari n g an y ch al l en g e t o th e am o u n to f h i s u n d erl y i n g t ax l i ab i l it y fo r an y rel ev an ty ear, n o r d i d h e p ro p o s e an y co l l ect i o n al t ern at i v e. Th e s et t lem en to ffi cer (SO1 ), aft er co n su l t i n g el ect ro ni c t ran s cri p t s o f p et i t i o n er’ s acco u n t s , co n cl ud edth atth e as s es s m en t s h adb een p ro p erl y m ad e an d t h atal l o t h er req u irem en t s o f ap p l i cab l e l aw an d ad m i n i st rat i v e p ro cedu re h ad b een m et . OnOct o b er 1 4 , 2 0 1 4 , SO1 i s su edp et it i o n er a n ot i ce o f d et erm in at i o n
s u s t ai n i n g t h e NFTL fi l i n g . OnNo v em

b er 1 7 , 2 0 1 4 , p et i t i o n er t i m el y p et i ti o n edth is Co urtfo r rev i ew. On J u l y 2 1 , 2 0 15 , res p o nd en tm o v ed t o rem an dth e cas e t o th e IRS Ap p eal s Offi ce fo r fu rth er co n s i d erat i on . Becau s e p et i t io n er d en i edthath e h adrecei vedth e n ot i ces of d efi ci en cy , res p on d en t co n cl u d edth atSO1 , i n o rd er t o s at i s fy th e v eri fi cat i on req u i rem en t, was req u ired t o l o o kb ey o n dth e co m p u t eri zedacco u n ttran s cri pt s an ds earch fo r ad d it i o n al ev id en ce t h atthe n o t i ces o f d efi ci en cy h adi n fact b een pro p erl y

m ai l ed . See Ho y l e v . Co m m i s si o n er, 1 3 1 T.C. 1 9 7 , 2 0 5 n .7 (2 0 0 8 ). W e d i rect edp et i t i o n er t o res p o n dt o the IRS rem an dm o t i o n , b u th e i g no redo u r
o rd er. On Au g u s t 2 5 , 2 0 1 5 , we g ran t edres po n d en t ’ s m o t i o n an drem an d edth e
cas e t o t h e IRS Ap p eal s Offi ce. On rem an dthe cas e was as s i gn edt o a n ew s et t lem en to ffi cer (SO2 ), wh o
s ch edu l eda face-t o -face h eari n g atp et i ti o n er’ s req u es t. Pet i t i o n er fai l edt o ap p ear- 5
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[* 5 ] fo r t h e h eari n g . SO2 acco rd i n g l y m ad e h i s d et erm i n at i o n o n th e b as i s o f t h e i n fo rm at i o n i n th e ad m i n i s t rat i v e fi l e an dth e ad d i t i on al d o cu m en t ary ev i d en ce t h at h e was ab l e t o s ecu re. SO2 req u es t edfro m

th e IRS Serv i ce Cen t er co p i es o f t h e n o t i ces o f d efi

ci en cy fo r 2 00 0 -2 0 0 6. He recei v edi n res p o n s e t h e o ri gi n al n ot i ces o f d efi ci en cy fo r 2 0 0 0 , 2 0 01 , 2 0 0 2 , 2 00 3 , an d2 0 0 5, al l o f wh ich th e USPS h adretu rn edt o th e IRS as u n d el i v erab le. To each o f t h es e n o t i ces was s t ap ledan o ri g i n al cert i fi ed
m ai l en v el o p e. SO2 recei v eda “ rep ri n t edco p y ” o f a n o ti ce o f d efi ci en cy fo r 2 0 0 6 , b u th e was u nab l e t o s ecu re a m ai l i n g en v el op e, a cert i fi edm ai l l i s t , o r o t h er d o cu m en t ary

ev i d en ce t hatth i s n o t ice h ad act u al ly b een m ai l edt o p et i t i o n er. SO2
was u nab l e t o s ecu re ei t h er t he o ri g i n al o r a co p y o f a n o t i ce o f d efi ci en cy fo r 2 0 0 4 o r an y

d o cu m en t ary

ev id en ce t h ati t h adb een m ai l edt o p et i t io n er. On th e b as is o f th i s ev i d en ce SO2 co n cl u d ed t hatth e n o ti ce o f d efi ci en cy fo r ev ery y ear b u t2 0 0 4 h adb een “p ro p erl y m ai led[b y ] cert i fi edm ai l t o th e t ax p ay er’ s l as t kn own ad d res s .” He co n cl u d ed t h atth e as s es sm en tfo r 2 0 0 4 “ i s n o t
co rrect b ecau s e t h e [S] erv i ce co u l dn o t p ro v e t h ati tev er m ai l ed t he t ax p ay er a
n o t i ce o f d efi ci en cy

fo r t h i s t ax p eri o d.” Th e IRS acco rd i n gl y ab at edi n fu l l th e
as s es s edt ax l i ab i l i ty

p l u s ap p l i cab l e p en al t i es an di n t eres t fo r 2 0 0 4 an d , o n- 6
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[* 6 ] M arch 3 , 2 0 1 6 , i s s u edp et i t i o n er a s up p l em en t al n o ti ce o f d et erm i n at i o n
s u s t ai n i n g t h e NFTL fi l i n g fo r 2 0 0 0 -2 0 0 3 an d2 0 0 5-2 0 0 6
. Aft er i s s u i n g th e s up p l em en t al n o t i ce o f d et erm i n at i o n, t he IRS ab at edi n fu l l th e as s es sed t ax l i ab i li t y p lu s ap p l i cab l e p en al t i es an di nt eres tfo r 2 0 0 6 . Th i s refl ect edi t s d et erm i n at i o n th atth e “ rep ri n t ed co py ” o f t he 2 0 0 6 n ot i ce, wi t h o u t
an y ev i d en ce o f p ro p er m ai l i n g , was i n s u ffi ci en t t o s up p o rtSO2 ’ s s at i s fact i o n o f t h e v eri fi cat io n req u i rem en t. Res p o n d en tacco rd i n gl y u rg es th atwe s u s t ai n th e
s up p lem en t al n o t i ce o f d et erm i n at i o n o nl y wi t h res pect t o t ax y ears 2 0 0 0, 2 0 0 1 , 2 0 0 2 , 2 0 0 3 , an d 2 0 0 5. OPINION Wh ere t h e v al id i t y

o f t h e u n d erl y i n g t ax l i ab i l i t y i s ati s s ue i n a CDP cas e, t h e Co u rtrev i ews th e IRS’ d et erm i nat i o n s d e n o v o. Go za v . Co m m i ss i o n er, 1 1 4 T.C. 1 7 6 , 1 8 1 -1 82 (2 0 0 0). Th e Co u rtrev iews t h e IRS’ d et erm i n at i on s reg ard i n g
n o n l i ab i l it y

i s s u es fo r ab u s e o f d i s cret i o n . Ho y l e v . Co m m i ss i o ner, 1 31 T.C. at 2 0 0 ; Go za, 1 14 T.C. at1 8 2 . Ab u s e o f d i s cret i on ex i s ts wh en a d et erm i n at i o n i s arb i t rary , cap ri ci o us , o r wi t h ou ts o u n d b as i s i n fact o r l aw. See M u rp h y v . Co m m i s s i o n er, 1 2 5 T.C. 3 01 , 3 2 0 (2 0 0 5 ), aff’ d , 4 6 9 F.3 d2 7 (1 s tCi r. 2 0 06 ). Du ri n g th e CDP p ro ces s th e s et t l em en to ffi cer m u s t : (1 ) v eri fy

th atth e requ i rem en t s o f ap p l i cab l e l aw o r ad m i n i s t rat i v e p ro cedu re h av e b een m et ; (2 ) co n -- 7
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[* 7 ] s i der an y

rel ev an ti ss u es th e t ax p ay er rai s ed ; an d(3 ) d et erm i n e wh et h er “ an y p ro p os edco l l ect i o n act i o n b al an ces th e n eedfo r th e effi ci en t co l l ect i o n o f t ax es wi t h th e l eg i t i m at e co n cern o f t h e t ax pay er t h atan y co ll ect i o n act i o n b e n o m o re i n t ru si v e t h an n eces s ary .” 2 See s ec. 6 33 0 (c)(3 ). Pet i t i o n er d i dn o tp ro p o s e a co l

l ect io n al t ern at i v e; i n d eed , h e d ecl i n edt o at ten dth e face-t o -face h eari n g t h ath e h ad s peci fi cal l y

req u es t ed . Hi s s o le co nt en t i o n i s th atSO2 fai l edt o v eri fy t h atthe
n o t i ces o f d efi ci en cy fo r 2 0 0 0 -2 0 0 3 an d2 0 05 were act u al l y m ai l edt o h i m . As p arto f h i s d et erm i n at i o n the s et t l em en to ffi cer m u s t v eri fy th ata v al i d
n o t i ce o f d efi ci en cy

was i s s u edt o th e t ax p ay er atth e t ax p ay er’ s l as t kn o wn ad

d res s . Sec. 6 33 0 (c)(1 ); J o rd an v . Co m m i s s i on er, 1 3 4 T.C. 1 , 1 2 (2 0 1 0 ); Ho y l e, 1 3 1 T.C. at2 00 . If a n o ti ce o f d efi ci en cy i s m ai l edt o th e t ax p ay er ath i s l as t kn o wn ad dres s , actu al recei p t of t h e n o t i ce i s i m m at eri al ; th e n o ti ce i s v al i d . E.g ., Un i ted St at es v . Zo l l a, 7 2 4 F.2 d8 0 8 , 8 1 0 (9 th Ci r. 1 9 8 4 ). Th e t ax p ay er’ s “ l as t kn o wn ad dres s ” i s th e ad dres s o n h i s m o s trecen t l y fi led an dp ro perl y

p ro ces sed t ax retu rn u nl es s h e h as g iv en th e IRS “ cl ear an d
co n ci s e n o t i fi cat i o n ” o f a d i fferen tad dres s. Sec. 3 0 1 .6 2 1 2 -2 (a), Pro ced . &

2 Wh ena cas e i s rem an d edt o th e IRS Ap p eal s Offi ce an da s up p l em en t al d et erm i n at i o n i s i s s u ed , th e p o si t i o n o f t h e IRS t h atwe rev i ew i s t h e p o s i t io n t ak en i n th e l as ts up p l em en t al d et erm i n at i o n . E.g ., Kel by v . Co m m i s s i o n er, 1 3 0 T.C. 7 9 , 8 6 (2 00 8 ).- 8
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[* 8 ] Ad m i n. Reg s .; s ee Ki n g v . Co m m i s s i on er, 8 5 7 F.2 d6 76 , 6 7 9 -6 8 0 (9 t h Ci r. 1 9 8 8 ), aff’ g 8 8 T.C. 1 0 42 (1 9 8 7 ); Bu ffan o v . Co m m i s si on er, T.C. M em o . 2 0 0 7
- 3 2 . Th e t ax p ay er h as th e b u rd en o f p ro v i n g th ata n o ti ce o f d efi ci en cy was n o t
s en tt o h i s l as t kn o w n ad d res s . Yu s k o v . Co m m i s s i o n er, 8 9 T.C. 8 0 6 , 8 0 8 (1 9 8 7 ). SO2 s ecu red fro m

th e IRS Serv i ce Cen t er th e o ri g i n al n o t i ce o f d efi ci en cy t h atwas m ai l edt o p et i t i on er fo r 2 0 0 0 , 2 0 0 1, 2 0 02 , 2 0 0 3 , an d2 0 0 5 . SO2 cred i b ly t es t i fi edth at , wh en h e recei v edth es e d o cu m en t s , each n o t i ce h ads t ap l edt o i tan
o ri g i nal cert i fi edm ai l en v el o p e. Th es e o ri g in al n o ti ces , wi t h o ri g i n al en v el o p es at t ach ed , were p ro du cedattri al . Pet i t i o n er h as s t i p u lat edth e au t h en t i ci ty o f t h es e d o cu m en t s , co p i es o f wh i ch are i n cl u d edas ex h i b i ts t o the s t i p ul at io n o f fact s . Th e n o t i ces o f d efi ci en cy fo r 2 0 00 , 2 0 0 1 , 2 00 2 , an d2 0 0 3 are d at edJ u n e 1 1 , 2 0 0 7 . Each n o t i ce i s ad d res s edt o p et i ti o n er at h is Lo n g Beach ad dres s , an deach
s h o ws a 2 0 -d i g i tUSPS cert i fi edm ai l n u m ber at th e t o p ri g h to f t h e co ver p ag e. 3

3 Pet i t i on er as s ert s t h ath e recen t l y tri edt o l o o kup , o n th e USPS W eb s i t e, t h e 2 0 -d i g i tcert i fi edm ai l n u m bers ap p eari n g o n th e n o t i ces o f d efi ci en cy . He u rg es th ath i s i nab i l i ty

t o fi ndan y

track i n g i n fo rm at i o n p ro v es t h atth e n o t i ces were n ev er m ai l ed . Pet i t i o ner’ s co n cl u s i o n d o es n o tfo l l o w fro m h i s p rem i s e. Th e n o t i ces o f d efi ci en cy ati s s u e were m ai ledi n 2 0 07 an d2 0 09 , an dth e USPS p u rg es cert ifi edm ai l reco rd s aft er t wo y ears . See Fo n g v . Co m m i s s i o n er, T.C. M em o . 2 0 0 7 -1 3 7 , 9 3 T.C.M . (CCH) 1 2 9 9 , 1 3 0 1 , aff’ d, 1 0 3 A.F.T.R.2 d(RIA) 2 00 9 -1 2 2 2 (9 t h Ci r. 2 0 0 9 ).- 9
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[* 9 ] Th e en v el o p e s t ap l edt o each n o t i ce i s i m p ri n tedwi t h t h e wo rd s

“ CERTIFIED M AIL.” Each en v el o pe i s a “ wi n d o wed ” o r “ lo o kth ro u gh ” en v el o p e, s u ch th atp et i

t i on er’ s ad d res s as p ri n t edo n the n o t i ce wo u l d h av e ap p earedth ro ug h the t ran s p aren cy . Each en v el o pe b ears a USPS ret u rn -t o -s en d er l ab el cap t io n ed “NOYE” fo l l o w edb y

th e n u m b ers “ 7 5 2.” “NOYE” co rres p o n ds t o th e fi rs tfo u r l et t ers o f p et i t i o n er’ s l as tn am e, an d“ 7 5 2 ” co rres p o nd s t o the l as t t h ree d i gi t s o f h i s s t reet ad d res s . Each en vel o p e b ears a USPS n o t at i on th at t h e en vel o p e was retu rn edt o
s en d er o n J u n e 2 7 , 2 0 0 7 , as “ n o td el i v erab le as ad dres s ed .” Th atd at e i s 1 6 d ay s aft er t h e d at e s h o wn o n each n ot i ce o f d efi ci en cy . 4 Th e n o t i ce o f d efi ci en cy

fo r 2 0 05 i s d at ed Decem b er 1 4 , 2 0 0 9. Iti s al s o ad d res s edt o p et it i o n er at h i s Lo n g Beach ad dres s an ds h o ws a 2 0 -d i g itcert i fi ed
m ai l n u m b er. Th e en v el o p e s t ap l ed t o th i s n ot ice, l i k ewi s e a “ w i n d o wed ” o r “ l o o k t h ro u g h ” en vel o p e, read s “ CERTIFIED M AIL.” It b ears a ret urn -t o -s en d er l ab el cap t i on ed“NOYE” fo ll o wedb y th e n u m b ers “ 7 5 2 ” an da USPS n o tat i o n th ati t
was retu rn ed t o s en d er as “ at tem p t ed --n o tkn o w n ” o n Decem b er 2 2 , 2 0 0 9 . Th at d at e i s ei g h td ay s aft er t h e d at e s h o wn o n th e n o t i ce o f d efi ci en cy .

4 Pet i t i on er n o tes thatthe en v el o pes th em s el v es d o n o ts h o w h i s n am e o r ad d res s . Th ati s b ecau s e t h e en v el o p es are “ w i nd o wed ,” s u ch t h atth e n am e an d ad d res s s h o wn o n each n o t i ce o f d efi ci en cy wo u l d ap pear t h ro u g h t h e wi n do w.- 1 0 -

[* 1 0 ] Res p o n d en tb ears the b urd en o f p ro v i n g, b y co m p et en t an d p ers u as i v e ev i

d en ce, th e p ro p er m ai li n g o f t h e n o t ices o f d efi ci en cy . Co lem an v . Co m m i s s i o n er, 9 4 T.C. 8 2 , 9 0 (1 9 9 0 ). Gen eral l y , i f t h e IRS s h o ws t hatth e n o ti ce o f d efi ci en cy
ex i s t edan dp ro du ces a p ro p erl y co m p l et edUSPS cert i fi edm ai l l i s t , i t i s en t i t l edt o a p res u m p ti o n o f m ai l i n g . See O’ Ro u rk e v . Un i t edSt at es , 5 87 F.3 d 5 3 7 , 5 4 0 (2 d Ci r. 2 0 09 ); Zo l l a, 7 2 4 F.2 d at8 1 0 ; Co l em an , 9 4 T.C. at9 1 -9 2
. Iti s wel l es t ab

l i sh ed , h o wev er, t h atth e IRS i s n o t req ui redt o p ro du ce a cert i fi edm ai l l i s t i f i t p ro v id es ev i d en ce o f p ro p er m ai l i n g th ati s “ o t h erwi s e s u ffi ci en t .” Co l em an , 9 4 T.C. at9 1 ; s ee al s o Cro p p er v . Co m m i s si o n er, 8 2 6 F.3 d 1 28 0 , 1 2 8 6 (1 0 t h Ci r. 2 0 1 6 ), aff’ g T.C. M em o . 2 0 1 4 -1 3 9; Wh eatv . Co m m is s i o n er, T.C. M em o . 1 9 9 2
- 2 6 8 , 6 3 T.C.M . (CCH) 2 9 5 5 , 2 9 5 8 . Inad d i t io n , wh en“ t h e ex i s t en ce o f a n o t i ce o f d efi ci en cy

i s n o ti n d i s p u te,” as i s th e cas e h ere, al l th ati s req u i redi s “ ev i d en ce
co rro b o rat in g an actu al t i m el y m ai l i n g o f t he n o t i ce o f d efi ci en cy .” W el ch v . Un i ted St at es , 6 7 8 F.3 d1 37 1 , 1 3 7 8-1 3 7 9 (Fed . Ci r. 2 0 1 2). Gi v en th e p as s ag e o f t im e, SO2 was u n ab l e t o s ecu re cert i fi edm ai l l i s t s reco rd i n g d el i v ery

o f t h e fi v e cert i fi edm ai l en v el o p es t o t h e USPS. Ho wev er, res p o n den th as co n v i nci n g ly es t ab l i sh edth atth e n o t i ces o f d efi ci en cy fo r 2 0 0 0 , 2 0 0 1 , 2 0 0 2 , 2 0 0 3, an d2 00 5 were act u al l y s en tt o p et i t io n er b y

cert i fi edm ai l
. Each n o t ice h as a cert i fi edm ai l n u m b er an deach en v el o p e read s “ CERTIFIED- 1 1 -

[* 1 1 ] M AIL” atth e t op . Each en v el o p e b ears a USPS n ot at i o n s h o wi ng th ati twas
m ai l edt o p et i t io n er at h i s Lo n g Beach ad dres s . An deach en vel o p e b ears a USPS
n o t at i o n th atth e en v el o pe was retu rn edt o t h e IRS o n a d at e t h at i s s h o rt l y aft er t h e d at e i m p ri n t edo n t h e n o t i ce o f d efi ci en cy . Pet i t i o n er h as n ots u g g es t ed an y o t her
co m m u n icat io n t hatth e IRS m i g h th av e d i rect ed t o h i m o n th es e d at es . W e h av e
n o d i ffi cu l t y co n cl u d i n g th atth e n ot i ces o f d efi ci en cy were m ai l edi n th e en v el o p es t o wh i ch th ey

were at t ach ed
. Pet i t i o ner d o es n o td is p ut e t h atth e Lo n g Beach ad dres s was h i s “ l as tkn o wn ad d res s ” wh enth e n o t i ces o f d efi ci en cy were m ai ledt o h i m

i n 2 0 0 7 an d2 0 0 9 . In
an y ev en t , SO2 v eri fi edth atfact b y co n s ul t i n g tw o s ep arat e IRS d at ab as es . Th o s e d at ab as es rev eal edthatth e y ear o f p et i t i o n er’ s l at es tretu rnwas 1 9 9 1 , th atth e ad

d res s s h o wn o n th atretu rn was th e Lo n g Beach ad dres s , an dth atp et it i o n er d i dn o t
n o t i fy th e IRS o f h i s n ew To rran ce ad dres s u n ti l 2 0 1 1
. 5 W e acco rd in g l y fi n dth at SO2 ex erci s edreas o n ab le d i li g en ce i n d et erm i ni n g thatth e Lo n g Beach ad dres s
was p et i t i o n er’ s “ las t kn o w n ad d res s .” See Ki n g , 8 5 7 F.2 dat6 8 0 (ad op t i ng

“ b ri g h t -l i n e ru l e” t h at“ t h e t ax pay er’ s ‘ l as t kn o wn ad dres s ’ i s the ad dres s * * *

5 Th e t ran s cri p to f p et i t i on er’ s acco u n t fo r each y ear s h o ws th e To rran ce ad d res s fo l l o wedb y

th e n o t at i o n “ ADDR-CHG-CYCT>2 0 1 1 -3 7.” SO2 t es t i fi ed t o h i s u n d ers t an di n g th atp et i t i o n er n o t i fi edth e IRS o f h i s n ew ad dres s du ri n g “ cy cl e 3 7 ” o f cal en d ar y ear 2 0 1 1
.- 1 2 -

[* 1 2 ] [s h o wn ] o n h is /her m os t recen tretu rn ” s o th at “ [a] n o t i ce o f d efi ci en cy
m ai l edt o th atad d res s wi l l b e s u ffi ci en t , u n l es s th e t ax pay er s ub s eq u en t l y co m m u ni cat es ‘ cl ear an d co n ci s e’ n o t i ce o f a ch an g e o f ad dres s ”). In s u m , SO2 reas o n ab ly

co n cl u d edth at t he n o ti ces o f d efi ci en cy fo r 2 0 0 0 , 2 0 0 1 , 2 0 0 2 , 2 0 0 3, an d2 00 5 were act u al l y m ai l edt o p et i t i o n er at h i s l as t kn o wn ad d res s . SO2 th erefo re p ro p erl y d et erm in edth at t h e t ax fo r each y ear h adb een p ro p erl y as s es s ed , ev en th o u gh p et i t i o ner d idn o t recei v e t h e n o t i ces . See Zo l l a, 7 2 4 F.2 dat8 1 0 ; DeW el l es v . Un i t edSt at es , 3 7 8 F.2 d3 7 , 3 9 (9 t h Ci r. 1 9 6 7 ); Pi et an za v . Co m

m i s s i o n er, 9 2 T.C. 7 2 9 , 7 3 6 (1 9 8 9 ) (g ran t i n g th e t ax p ay er’ s
m o ti o n t o d i s m i s s fo r l acko f ju ri s d i ct i o n wh ere t h e IRS fai l edt o p ro v e t h e m ai l i n g
o f a v al i dn o t i ce o f d efi ci en cy ), aff’ dwi t h o u tp ub l i s h edo p in i o n , 9 3 5 F.2 d1 2 8 2 (3 dCi r. 1 9 9 1). W e wi l l th erefo re s u s t ai n t h e p ro p o sedco l l ect i o n act i o n fo r 2 0 0 0 , 2 0 0 1 , 2 0 0 2 , 2 0 0 3, an d2 00 5 b u tn o tfo r 2 0 0 6
. To i m p lem en tth e fo reg o i n g , Deci s i o n wi ll b e en t eredfo r
res p o nd en t s us t ai n i n g th e s up p l em en t al
n o ti ce o f d et erm i n at i o n t o th e ex ten ts et fo rt h ab o ve.