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Change of Address – How to Notify the IRS and Why October 30, 2019

Failure to Send Change of Address Form to the IRS Meant Taxpayers Missed the Deadline for Petitioning Tax Court

Deficiency Notice Went to Taxpayers “Last Known Address” (Damien and Shayla Gregory v. Comm., 152 TC No. 7 (Mar. 13, 2019))

Damien and Shayla Gregory moved from Jersey City, New Jersey, to Rutherford, New Jersey. After they moved, they filed their joint 2014 Federal income tax return using their old address. While an IRS audit was ongoing, the Gregorys submitted Forms 2848 (POA) and 4868 (extension), showing their new address. The IRS mailed a notice of deficiency to the Gregory’s at their old address. The Gregorys filed an untimely petition. The IRS moved to dismiss for lack of jurisdiction, arguing that the taxpayers filed an untimely petition. The Gregorys argued that the IRS failed to send the notice of deficiency to their last known address.

IRS Change of Address Form

A notice of deficiency provides sufficient notice if sent to the taxpayer’s last known address (§6212(b)(1)). A taxpayer’s last known address is the address shown on the most recently filed and properly processed return unless updated by clear and concise notification of a different address. The court held that neither the Form 2848, not the Form 4868, constitute a return for purposes of updating a taxpayer’s last known address. Thus the IRS’ notice of deficiency was sufficient.

TAX PRACTITIONER PLANNING

This case shows the importance of Form 8822, Change of Address. Failing to use the change of address form cost these taxpayers the opportunity to be heard by the tax court.

Also see. R.H.Tilden v. Comm, CA-7 15-3838 (Jan. 13, 2017), where attorney’s failure to register a letter could have saved a tax court petition and an appeal to CA-7.

Sharon Kreider, CPA, has helped more than 15,000 California tax preparers annually get ready for tax season. She also presents regularly for the AICPA, the California Society of Enrolled Agents, CCH Audio, and Western CPE. You’ll benefit from the detailed, hands-on tax knowledge Sharon will share with you—knowledge she gained through her extremely busy, high-income tax practice in Silicon Valley. With her dynamic presentation style, Sharon will demystify complex individual and business tax legislation. She’s a national lecturer for business and professional groups and consistently receives outstanding evaluations. In 2014, she was awarded the prestigious AICPA 2014 Sidney Kess Award for Excellence in Continuing Education.

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Mark F. Seid, EA, CPA has an active tax practice in Paso Robles, California specializing in small businesses and tax controversy. A National Tax Practice Institute graduate, Mark is admitted to practice before the U.S. Tax Court. He has served as an Internal Revenue Agent with the IRS in San Jose and San Luis Obispo, California, a state director for the California Society of Enrolled Agents, and the chair for the society’s Finance and Budget committee. He regularly presents courses to tax professionals on issues affecting small businesses.

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