Tax Court Dismisses Petition Filed Electronically Five Minutes Past Midnight

(Parker Tax Publishing May 2023)

The Tax Court dismissed for lack of jurisdiction an electronically filed Tax Court petition which was filed on the due date at 11:05 p.m. in the central time zone. The court held that a document that is electronically filed with the Tax Court is filed when it is received by the court as determined in reference to where the court is located (i.e., Washington, D.C.), and because the taxpayers electronically filed the petition after the due date in the eastern time zone, the petition was untimely. Nutt v. Comm'r, 160 T.C. No. 10 (2023).

Background

The IRS mailed a notice of deficiency to Roy and Bonnie Nutt on April 14, 2022, determining an income tax deficiency and an accuracy-related penalty for 2019. Notwithstanding the actual mailing date, the notice was dated April 18, 2022, and the notice stated that the last day to file a petition with the Tax Court was July 18, 2022. That date was a Monday and was not a legal holiday in the District of Columbia. The notice stated that the Nutts could "get a petition form and the rules for filing from the Tax Court's website at www.ustaxcourt.gov, or by contacting the Office of the Clerk at . . . 400 Second Street, NW, Washington, DC 20217." The IRS also sent a letter dated June 7, 2022, to the Nutts in which he reduced the amount of the deficiency and reminded the Nutts of the July 18, 2022, deadline to file a petition in the Tax Court.

While residing in Alabama, the Nutts electronically filed their petition. At the time of filing, the court's electronic case management system (DAWSON) automatically applied a cover sheet to their petition. The cover sheet shows that the Tax Court electronically received the Nutts' petition at 12:05 a.m. eastern time on July 19, 2022, and filed it the same day. When the court received the petition, it was 11:05 p.m. central time on July 18, 2022, in Alabama. The IRS filed a motion to dismiss the Nutts' petition, contending that the Tax Court lacked jurisdiction because the Nutts' petition was not filed on time.

Under Code Sec. 6213(a), a petition must be filed within 90 days after the notice of deficiency is mailed. If the notice specifies a last day for filing a petition that is later than the 90th day, then the deadline is extended to the date specified. The Nutts' last day to file their petition was Monday, July 18, 2022. Although the notice of deficiency was actually mailed on April 14, 2022, the notice stated that the last date to file a petition was July 18, 2022, and the Nutts were thus entitled under Code Sec. 6213(a) to rely on the date stated in the notice.

A Tax Court petition is ordinarily "filed" when it is received by the Tax Court in Washington, D.C., unless the mailbox rule in Code Sec. 7502 applies. Under Code Sec. 7502(a), a document that is mailed before it is due, but received after it is due, is deemed to have been received when mailed. The mailbox rule applies only to documents that are delivered by U.S. mail or a designated delivery service. It does not apply to an electronically filed Tax Court petition.

Under Tax Court Rule 22(a), a paper "must be filed with the Clerk in Washington, D.C., during business hours" unless it is electronically filed. Tax Court Rule 22(d) provides that a "paper will be considered timely filed if it is electronically filed at or before 11:59 p.m., eastern time, on the last day of the applicable period for filing." The Tax Court's website also instructs petitions how to electronically file a petition through DAWSON in accordance with Rule 22(d). The instruction states that the Tax Court "must receive your electronically filed Petition no later than 11:59 pm Eastern Time on the last date to file. Petitions received after this date may be dismissed for lack of jurisdiction."

Analysis

The Tax Court held that the Nutts' petition was untimely because it was filed in Washington, D.C., after the last day for filing prescribed by Code Sec. 6213(a). The court noted that a timely filed petition is a prerequisite to the court's jurisdiction in a deficiency case under Code Sec. 6213.

"Filing" ordinarily occurs, the court stated, when a petition is received by the Tax Court in Washington, D.C., which is in the eastern time zone. According to the court, an electronic petition is timely if it is file by 11:59 p.m. eastern time on the last day for filing. Because the Nutts' petition was filed after the last day for filing had ended in the eastern time zone, the court concluded that it was required to dismiss their case for lack of jurisdiction. The court explained that it cannot extend the period within which to file a petition. The court added that if it were to hold that the Nutts' electronically filed petition was timely because it was still the last day to file in Alabama, even though the last day had ended in the District of Columbia, the court would be impermissibly extending the number of days available for filing.

The court observed that Tax Court Rule 22 is consistent with other federal rules and caselaw. For example, Rule 6(a)(4) of the Federal Rules of Civil Procedure provides that the last day of a period for electronic filing ends "at midnight in the court's time zone." Interpreting Federal Rule 6(a), the Seventh Circuit observed in Justice v. Town of Cicero, Ill., 682 F.3d 662 (7th Cir. 2012), that electronic filing systems have the effect of extending the number of hours available for filing - from when the clerk's office closes until 11:59 p.m. in the court's time zone - but not the number of days. The Tax Court reasoned that, as with Federal Rule 6(a), Rule 22(d) is consistent with the idea that the court's electronic filing system serves as a substitute for the clerk of the court. The electronic filing system stands in the clerk's place; according to the Tax Court, it follows that if the "last day" has ended where the clerk's office is standing, the last day for electronic filing has ended as well.

For a discussion of the rules for filing a Tax Court petition, see Parker Tax ¶263,510.

Disclaimer: This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer. The information contained herein is general in nature and based on authorities that are subject to change. Parker Tax Publishing guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. Parker Tax Publishing assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein.

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