Pub. 2 2020 Issue 2

13 nebraska society of cpas W W W . N E S C P A . O R G CPA INSIDER: CHANGE OF ADDRESS FORM IS IMPORTANT BY VERN HOVEN, CPA, MT For more information, contact Western CPE’s customer service center at (800) 822-4194 or wcpe@westerncpe.com . ©2020 Vern Hoven and Sharon Kreider Deficiency Notice Went to Taxpayers “Last Known Address” (Damien and Shayla Gregory v. Comm., 152 TC No. 7 (March 13, 2019)) Damien and Shayla Gregory moved from Jersey City, NJ, to Rutherford, NJ. 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 Gregorys at their old address. The Gregorys filed an untimely tax court petition. The IRS moved to dismiss for lack of jurisdiction, arguing that the taxpayers did not file timely. The Gregorys argued that the IRS failed to send the notice of deficiency to their last known address, as shown on the POA and extension. 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 tax court held that Form 2848 and Form 4868 did not constitute a return for purposes of updating a taxpayer’s last known address. Thus, the IRS’ notice of deficiency was sufficient. Tax Practitioner Planning Failing to use the change of address form cost these taxpayers the opportunity to be heard by the tax court. Forms Use Form 8822 to notify the IRS of a change in address for individual clients. Use the Form 8822-B to notify the IRS of a change of address for a business return. t Remember that the change of address form is important for your clients that have moved their residence or business. A recent tax court case illustrates the problem when the IRS is not “officially” notified of the address change.