U.S. Supreme Court revives law firm’s day-late challenge to IRS levy

Individuals go to the U.S. Supreme Court docket constructing in Washington, U.S. March 15, 2022. REUTERS/Emily Elconin

(Reuters) – The U.S. Supreme Courtroom on Thursday dominated that a compact North Dakota regulation agency deserved a shot to challenge the Interior Income Service’s capacity to seize its home after lacking by a single day a deadline to deliver a case challenging a levy it issued.

The justices in a 9- selection ruled that the Boechler company could find to have the reality that it skipped the 30-working day deadline to file a case in U.S. Tax Court docket by one day excused due to the fact Congress did not clearly condition it relevant to the court’s jurisdiction, which would make it a rigorous deadline.

Justice Amy Coney Barrett called the wording of the relevant provision of the IRS code “uncomfortable” and matter to “numerous plausible interpretations.”

It stated a taxpayer “might, in just 30 times of a willpower less than this part, petition the Tax Courtroom for assessment of such determination (and the Tax Courtroom shall have jurisdiction with respect to this sort of issue).”

Barrett claimed Boechler’s assert that the to start with element of the sentence and the parenthetical operated separately, creating the deadline unrelated to the Tax Court’s jurisdiction, was “barely a slam dunk” and the IRS might have the “greater” looking at.

“But in this context, improved is not more than enough,” Barrett wrote. “To fulfill the clear-statement rule, the jurisdictional ailment will have to be just that: very clear.”

She mentioned that intended the Tax Court docket could forgive the firm’s filing of a petition 31 times after the IRS’ Unbiased Workplace of Appeals upheld the agency’s designs to seize and promote Boechler’s residence to fulfill a $19,250 penalty.

Melissa Arbus Sherry, a Latham & Watkins lover who argued the case for Boechler, stated she was “thrilled.” The circumstance was handled by an all-women team of legal professionals, a notable reality presented the Supreme Court docket bar is nevertheless overwhelmingly male. Affiliate Amy Feinberg brought the scenario in professional bono.

“We are especially gratified that all taxpayers, and specially low-income and professional se taxpayers, will now be specified a fair option to have their working day in court docket,” Sherry stated in a assertion.

The IRS declined to comment.

Fargo-primarily based Boechler is run by Jeanette Boechler, a one-time Democratic candidate for North Dakota legal professional common in 2010 who handles asbestos litigation.

In 2015, the IRS informed the firm about a discrepancy with its 2012 taxes. Immediately after Boechler did not reply, the IRS imposed the penalty and notified her of its designs to seize her house.

Soon after the IRS Business of Appeals sustained the levy in 2017, Boechler filed a petition with the Tax Court docket a day late, resulting in its dismissal. The 8th U.S. Circuit Courtroom of Appeals affirmed.

The case is Boechler Computer v. Commissioner of Interior Earnings, U.S. Supreme Courtroom, No. 20-1472.

For Boechler: Melissa Arbus Sherry, Amy Feinberg and Caroline Flynn of Latham & Watkins

For the IRS: Jonathan Bond of the U.S. Justice Section

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