Boechler, P.C. v. Commissioner of Internal Revenue

Justia (with opinion) · Docket · oyez.org

Argued on Jan 12, 2022.
Decided on Apr 21, 2022.

Petitioner: Boechler, P.C..
Respondent: Commissioner of Internal Revenue.

Advocates:

• Melissa Arbus Sherry (On behalf of the Petitioner)

Facts of the case (from oyez.org)

On June 5, 2015, the Internal Revenue Service sent Boechler, P.C., a letter noting a discrepancy between prior tax document submissions. After not receiving a response, the IRS imposed a 10% intentional disregard penalty, which Boechler did not pay. The IRS mailed Boechler a notice of intent to levy. Boechler timely responded but failed to establish grounds for relief. On July 28, 2017, the Office of Appeals mailed a determination sustaining the levy to Boechler's last known address in Fargo, North Dakota. The notice of determination, delivered on July 31, stated that Boechler had 30 days from the date of determination, i.e. until August 28, 2017, to submit a petition for review.

Boechler mailed a petition for a CDP hearing on August 29, 2017, one day after the 30-day filing deadline had expired. The Tax Court received Boechler's untimely petition, and the IRS moved to dismiss for lack of jurisdiction. Boechler argued that the 30-day time limit in 26 U.S.C. § 6330(d)(1) is not jurisdictional, the time limit should be equitably tolled, and calculating the time limit from issuance rather than receipt violates due process. The tax court dismissed the petition for lack of jurisdiction, and Boechler appealed.

Question

Is the 30-day time limit to file a petition for review in the Tax Court of a notice of determination from the commissioner of internal revenue in 26 U.S.C. § 6330(d)(1) a jurisdictional requirement or a claim-processing rule subject to equitable tolling?

Conclusion

The 30-day time limit of 26 U.S.C. § 6330(d)(1) is a nonjurisdictional deadline subject to equitable tolling. Justice Amy Coney Barrett authored the opinion for a unanimous Court.

A procedural requirement is jurisdictional only if Congress “clearly states” it is. Section 6330(d)(1) provides that a “person may, within 30 days of a determination under this section, petition the Tax Court for review of such determination (and the Tax Court shall have jurisdiction with respect to such matter).” Thus, the meaning of this provision turns on the meaning of “such matter.” Because the phrase “such matter” in that sentence lacks a clear antecedent, the text does not “clearly” mandate a jurisdictional reading. Nonjurisdictional limitations periods are presumptively subject to equitable tolling, and nothing in the facts of this case rebuts that presumption.