T.C. Memo. 1999-266
UNITED STATES TAX COURT
VINCENT J. AND SUSAN L. MARANTO, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 16364-98. Filed August 9, 1999.
Victor A. Latham, for petitioners.
Jordan Musen, for respondent.
MEMORANDUM OPINION
NAMEROFF, Special Trial Judge: This case is before the
Court on cross-motions to dismiss for lack of jurisdiction. It
was heard pursuant to section 7443A. Respondent contends that
petitioners failed to file their petition within the time
prescribed by section 6213(a),1 while petitioners contend that
1
All section references are to the Internal Revenue Code.
All Rule references are to the Tax Court Rules of Practice and
Procedure.
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the notice of deficiency was invalid because respondent failed to
mail it to petitioners’ last known address. Petitioners resided
at 6100 Edinger Avenue, #634, Huntington Beach, California 92647
(the Edinger Avenue address), at the time they filed their
petition.
Respondent determined a deficiency in petitioners’ 1992
Federal income tax in the amount of $12,959 and an accuracy-
related penalty under section 6662(a) in the amount of $2,592.
On July 16, 1996, respondent mailed duplicate copies of the
notice of deficiency by certified mail to 11815 Blake Road,
Wilton, California 95693-8542 (the Blake Road address), and to
17931 Fern Point Circle, Huntington Beach, California 92647 (the
Fern Point Circle address). The petition was filed herein on
October 7, 1998, more than 2 years after the mailing of the
notice of deficiency. Respondent alleges that the notice mailed
to the Fern Point Circle address was returned undeliverable, but
that the one mailed to the Blake Road address was not.
During the examination of petitioners’ 1992 Federal income
tax return, petitioners signed and submitted to the Internal
Revenue Service a Form 2848, Power of Attorney and Declaration of
Representative, naming James F. Christensen (Mr. Christensen),
3151 Airway Avenue, Suite B1, Costa Mesa, California 92626 (the
Airway Avenue address), as their representative. The Form 2848
was dated by petitioners on November 22, 1995, and by Mr.
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Christensen on November 30, 1995. (We note that the address of
petitioners shown on the Form 2848 was the Fern Point Circle
address). On October 16, 1996, respondent sent a copy of the
notice of deficiency for petitioners’ 1992 taxable year to Mr.
Christensen by regular mail. Mr. Christensen received the notice
of deficiency but did not advise petitioners of the receipt
because he believed that petitioners’ 1992 return was being
handled by a San Francisco law firm. Mr. Christensen filed the
copy of the notice of deficiency in his records.
Page 2 of the Form 2848, under the heading “Notices and
Communications”, states: “Notices and other written
communications will be sent to the first representative listed on
line 2.” The form further provides two blocks to be checked to
vary the statement, but neither block was checked.
By letter dated July 13, 1995, petitioners advised Revenue
Agent Curtis Lawrence that they had moved to northern California
in August 1994. The letter continues: “I request any inquiry
required in regards to Maranto Enterprises be forwarded to a
location closier [sic] to my home.” The letter reflects the
Blake Road address. Petitioners filed their 1994 Federal income
tax return in October of 1995. That return reflects the Blake
Road address.
This Court’s jurisdiction to redetermine a deficiency
depends upon the timely issuance of a valid notice of deficiency
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and a timely filed petition. See Rule 13(a), (c); Monge v.
Commissioner, 93 T.C. 22, 27 (1989); Normac, Inc. v.
Commissioner, 90 T.C. 142, 147 (1988). Section 6212(a)
authorizes the Secretary, upon determining that there is a
deficiency in income tax, to send a notice of deficiency “to the
taxpayer by certified or registered mail.” Section 6212(b)
provides that a notice of deficiency, in respect of an income
tax, “shall be sufficient” if it is “mailed to the taxpayer at
his last known address”. Generally, the Commissioner has no duty
to effect delivery of the notice after it is mailed to the
taxpayer’s last known address. See Monge v. Commissioner, supra
at 33.
Neither section 6212 nor the regulation promulgated
thereunder, section 301.6212-1, Proced. & Admin. Regs., defines
what constitutes a taxpayer’s “last known address”. We have
defined it as the taxpayer’s last permanent address or legal
residence known by the Commissioner, or the last known temporary
address of a definite duration to which the taxpayer has directed
the Commissioner to send all communications during that period.
See Weinroth v. Commissioner, 74 T.C. 430, 435 (1980); Alta
Sierra Vista, Inc. v. Commissioner, 62 T.C. 367, 374 (1974),
affd. without published opinion 538 F.2d 334 (9th Cir. 1976).
Stated otherwise, it is the address to which, in light of all the
surrounding facts and circumstances, the Commissioner reasonably
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believed the taxpayer wished the notice to be sent. See Weinroth
v. Commissioner, supra. The relevant focus is thus on the
Commissioner’s knowledge, rather than on what in fact may have
been the taxpayer’s actual address in use. See Brown v.
Commissioner, 78 T.C. 215, 219 (1982) (citing Alta Sierra Vista,
Inc. v. Commissioner, supra at 374.)
In Abeles v. Commissioner, 91 T.C. 1019 (1988), we held that
a taxpayer’s last known address is the address shown on his most
recent return, absent clear and concise notice of a change of
address. See Monge v. Commissioner, supra at 28. Under this
principle, the Blake Road address was petitioners’ last known
address as it was shown on petitioners’ 1994 Federal income tax
return, the last return filed before July 16, 1996.
A validly executed power of attorney may suffice to render
an attorney’s address the taxpayer’s “last known address” if it
directs that all original notices and written communications be
sent to the taxpayer at the attorney’s address. See D’Andrea v.
Commissioner, 263 F.2d 904 (D.C. Cir. 1959); Reddock v.
Commissioner, 72 T.C. 21 (1979); Lifter v. Commissioner, 59 T.C.
818, 821 (1973).
The Form 2848 executed by the taxpayers in the above-cited
cases directed the taxpayers to choose between having originals
or copies of all notices and written communications sent to their
representatives. The new Form 2848, which was revised in
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February 1993 and which is involved in this case, provides simply
that “notices and other written communications will be sent” to
the taxpayer’s designee. We have previously held that that
language is sufficient to render the address of the taxpayer’s
representative the “last known address” of the taxpayer. See
Honts v. Commissioner, T.C. Memo. 1995-532. Under this
principle, the notice mailed to Mr. Christensen at the Airway
Avenue address, and received by him, was sent to petitioners’
last known address.
Petitioners contend that respondent should have mailed the
notice of deficiency to the Edinger Avenue address. We disagree.
As indicated above, the address shown on petitioners’ most
recently filed return serves as notice to respondent of
petitioners’ last known address unless respondent was given clear
and concise notification of a change in that address.
Accordingly, petitioners’ 1994 return, which was filed in October
of 1995, was the last filed return before the mailing of the
notice of deficiency for 1992. Petitioners’ 1995 return showing
the Edinger Avenue address was filed after the mailing of the
notice of deficiency by certified mail to the Blake Road address.
Petitioners’ contention that they provided a new address to
respondent’s Appeals Office orally in a telephone conversation
has not been proven. Petitioner husband testified to such a
conversation, but his testimony was rather vague. On the
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contrary, the person to whom he spoke, Janet Cole, from the Los
Angeles Appeals Office, recalls the conversation but does not
recall receiving any added information as to petitioners’ new
address. The Appeals documentary record in the case, attached to
the supplement to respondent’s motion to dismiss for lack of
jurisdiction, reflects that an entry was made at some
undetermined time, changing the Fern Point Circle address to the
Blake Road address.
Moreover, in March 1996, petitioner husband filed a
voluntary petition in bankruptcy in the U.S. Bankruptcy Court for
the Eastern District of California, Sacramento Division, in which
he listed the Blake Road address as his current address.
If the Blake Road address was not petitioners’ last known
address, then certainly the Airway Avenue address for Mr.
Christensen would have been petitioners’ last known address. See
Honts v. Commissioner, supra. The record is clear that
respondent mailed by regular mail a copy of the notice of
deficiency for 1992 to Mr. Christensen on October 16, 1996, and
that he received it. Petitioners contend that respondent has
failed to prove the exact date upon which Mr. Christensen
received it, but we do not believe that is necessary. Respondent
did offer testimony of a representative of the U.S. Postal
Service that mail from respondent’s office to Mr. Christensen’s
office would normally have been received within 2 or 3 days, and
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we find that such testimony, in conjunction with Mr.
Christensen’s admission of receipt, is satisfactory evidence that
the mail was delivered in the regular course of business, and
that Mr. Christensen timely received the document.
Petitioners then contend that respondent did not mail the
notice of deficiency to Mr. Christensen’s office by certified
mail. We note that the U.S. Court of Appeals for the Third
Circuit has squarely addressed and rejected this argument in
Berger v. Commissioner, 404 F.2d 668 (3d Cir. 1968), affg. 48
T.C. 848 (1967). See also Freiling v. Commissioner, 81 T.C. 42,
51 n.13 (1983); Balkissoon v. Commissioner, T.C. Memo. 1992-322,
affd. 995 F.2d 525 (4th Cir. 1993). In Berger v. Commissioner,
supra at 675, the court stated:
We therefore reject a construction of the procedural
provisions of section 6212 which would yield the
startling conclusion that a notice given to clients
and their lawyer is inadequate even though they
received it in due course, simply because the lawyer’s
copy should have been the original, and the channel of
certified mail which was used for the taxpayers should
have been used for the lawyer.
Accordingly, we hold that the notice of deficiency for
petitioners’ 1992 taxable year was validly sent to petitioners’
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last known address and that the petition filed more than 2
years later was untimely.
An order will be entered
granting respondent’s motion
to dismiss and denying
petitioners’ motion to
dismiss.