Tax Court tells claimant he should have used USPS to file appeal

Forbes’ Peter J. Reilly recounts the tale of a man who received a “notice of deficiency” from the IRS, giving him 90 days to appeal the notice, or cough up $41,849.25. Not surprisingly, the gentleman chose to appeal the notice. Unfortunately, he waited until the last minute to do so:

Mr. Sander’s petition did not arrive in the Tax Court that late. It was supposed to be there on Friday May 3.

On Monday, May 6, 2013, petitioner filed a petition with this Court seeking redetermination of the deficiency and a fraud penalty. The petition, which is dated Wednesday, May 1, 2013, was delivered to the Court by United Parcel Service, Inc. (UPS), a private delivery service, in an envelope bearing a UPS label dated May 2, 2013, and indicating that it had been sent by “UPS Ground” service.

Here’s the thing. If Mr. Sanders had used the United States Postal Service, he would have been fine, even if the petition had been delivered a few days later.

Why? Because, as most people know, even in these days of electronic filing, the IRS accepts a postmark as proof of the date of filing. What qualifies as a postmark? The familiar USPS cancellation works, of course, but the IRS also accepts “postmarks” from UPS and FedEx- but only if you use an IRS approved level of service. To quote the court decision:

insofar as UPS is concerned, the list of designated private delivery services is as follows: UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express

Not UPS Ground. So the unfortunate Mr. Sanders had to pay up. I don’t know how much he “saved” by using UPS Ground instead of UPS 2nd Day Air, but it still cost him more than a first class stamp would have! Even before you add in the $41,849.25.

Read more: Tax Court Petitions – UPS v USPS – One Letter – Big Difference – Forbes.

Reilly has another story about mailing tax appeals here. In this case simply using the USPS didn’t help!

  • Peter J Reilly

    The second case was about a Court of Claims filing. They don’t have a timely mailed timely filed rule.

  • postalnews

    No, but it was still a good story- I wonder what happened next though- did the estate have any recourse against the attorney?

  • Peter J Reilly

    Probably they did, although it would likely be settled in a private manner. It’s not something that I would know how to research. That’s a great icon you are using. I collected stamps when I was a kid.

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