A Win For Taxpayers'Section 6330(d)(1) Is A Nonjurisdictional Deadline

• Published date: 26 April 2022
• Subject Matter: Litigation, Mediation & Arbitration, Tax, Trials & Appeals & Compensation, Tax Authorities
• Law Firm: Freeman Law
• Author: Mr Zachary J. Montgomery

Collection Due Process Hearings and Jurisdiction

Collection Due Process ("CDP") hearings are crucial to taxpayers. Taxpayers have a right to a Collection Due Process hearing with the IRS Independent Office of Appeals before levy action is taken. According to the IRS, a "CDP hearing is an opportunity to discuss alternatives to enforced collection and permits you to dispute the amount you owe if you have not had a prior opportunity to do so."¹ When a taxpayer receives a notice of determination from IRS Appeals, the taxpayer has 30 days to petition the U.S. Tax Court. The U.S. Supreme Court in Boechler, P.C. v. Commissioner recently held that a Tax Court petition may still be considered by the Tax Court even if it is late.

I.R.C. ' 6330(d)(1) - Collection Due Process Hearings

The statute at issue in Boechler is Section 6330(d)(1). For reference, the statutory language is reproduced below:

(d) Proceeding after hearing.-

(1) Petition for review by Tax Court.-The 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).²

Question Presented: Is the Section 6330(d)(1) Time Limit Jurisdictional?

Per my previous blog on Boechler-CDP Proceedings-Is the Time Limit in Section 6330(d)(1) a Jurisdictional Requirement for Tax Court Petitions?-the question presented, as stated in Boechler's filings, was as follows:

Section 6330(d)(1) of the Internal Revenue Code establishes a 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. 26 U.S.C. ' 6330(d)(1). The question presented is:

Whether the time limit in Section 6330(d)(1) is a jurisdictional requirement or a claim-processing rule subject to equitable tolling.

The Supreme Court's Decision-April 21, 2022

On April 21, 2022, just three months after oral arguments were held on January 12, 2022, the Supreme Court issued its decision in Boechler.³ The primary holding was as follows:

Section 6330(d)(1)'s 30-day time limit to file a petition for review of a collection due process determination is a nonjurisdictional deadline subject to equitable tolling.⁴

Justice Barrett wrote the opinion for the unanimous Court. During oral argument, Justice Barrett made the following statements regarding the clarity of Section 6330(d)(1): "Let's say that I think the government's interpretation is maybe a little bit more...