Some days, computers make all of our lives more difficult. Some days, the IRS is right when it claims that “$.00” does not mean zero dollars. Some days, you have to fight nonsensical tax assessments.
In a recent case, the IRS sent a taxpayer, Mr. Dees, a Notice of Deficiency, claiming Mr. Dees had a “Deficiency: $.00” on his 2014 income tax return. Inside the accompanying paperwork, it was clear that the IRS believed that the unfortunate Mr. Dees owed much more than “$.00.”
When the matter came before the Tax Court, the IRS attorney argued that the Notice was valid, claiming that the “$.00” figure was merely the result of a “clerical error.” In a 10 to 7 opinion, the Tax Court ruled that the IRS Notice was valid. Dees v. Commissioner, 148 T.C. ___, No. 1 (Feb. 2, 2017).
However, even tax cases can have a happy ending, if the taxpayer seeks timely legal advice. Because Mr. Dees’ lawyer petitioned the “$.00” assessment, this allowed the IRS attorney time to research the matter and conclude that Mr. Dees actually owed the IRS nothing (zilch). Had Mr. Dees not consulted a tax advisor, he could have owed a material sum to the IRS.
Strassburger McKenna Gutnick & Gefsky can help you fight any tax assessment, even nonsensical ones. Please contact John Kelly, jkelly@smgglaw.com or Dave Pollack, dpollack@smgglaw.com at (412) 281-5423 for help with any assessment. This post is provided for informational purposes only. Nothing in this post creates an attorney client relationship.
