COMMITTEE QUICK POINTS

Thank you to the Standing Committees of the CLA Taxation Section for providing quick points on a variety of Federal and state tax matters.

HALLMARK RESEARCH COLLECTIVE V. COMMISSIONER

On April 21, 2022, the U.S. Supreme Court decided the case Boechler P.C. v. Commissioner (142 S.Ct. 1493). In Boechler, the Supreme Court ruled that the 30-day period for petitioning the U.S. Tax Court under IRC section 6330(d) (1) in a Collection Due Process matter is not jurisdictional and thus subject to equitable tolling. Following the Supreme Court’s decision in Boechler, there was a question of whether other time periods for petitioning the Tax Court are also subject to equitable tolling. In Hallmark Research Collective v. Commissioner, a post-Boechler decision, the Tax Court ruled that the 90-day period under section 6213(a) is not (a long-standing precedent).

In Hallmark, the Internal Revenue Service issued a Notice of Deficiency ("Notice") to taxpayer Hallmark Research Collective ("Hallmark") under IRC section 6212. The Notice was dated June 3, 2021, and proposed adjustments for tax years 2015 and 2016. Under section 6213(a), Hallmark had 90 days from the Notice date, until September 1, 2021, to petition the Tax Court. Hallmark electronically filed its petition with the Tax Court one day late on September 2, 2021.