Matarozzo v. Commissioner of Internal Revenue, 120319 FEDTAX, 19228-14

Docket Nº:19228-14
Opinion Judge:David Gustafson Judge
Party Name:JAMES MICHAEL MATAROZZO & HEATHER RENEE BEACH, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Case Date:December 03, 2019
Court:United States Tax Court

JAMES MICHAEL MATAROZZO & HEATHER RENEE BEACH, Petitioners,

v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

No. 19228-14

United States Tax Court

December 3, 2019

ORDER

David Gustafson Judge

Now before us are petitioners' motion to vacate or revise our decision pursuant to Rule 162 (Doc. 13) and their motion to restrain collection or assessment (Doc. 15). We will deny both motions.

Background

SNQD and Tax Court petition

On May 13, 2014, the IRS issued to petitioners a statutory notice of deficiency ("SNOD") determining deficiencies of Federal income tax for 2010 in the amount of $124, 044 and for 2011 in the amount of $126, 198, plus accuracy-related penalties. Petitioners challenged that SNOD by filing a petition in this Court.

Stipulated Decision document

Petitioners' case was resolved by agreement, with the IRS conceding more than 90% of the amounts at issue. On June 8, 2015, the parties executed a stipulated "Decision" document. As is typical with such stipulations, the document consists of a proposed Decision (the Tax Court's equivalent of a judgment) with a place for the judge's signature, followed by additional stipulations by the parties (in this instance, addressing the accrual of interest and a waiver of the restrictions of section 6213(a)) and the signatures of the parties. The additional stipulations signed by the parties did not include any mention of restriction on audits of subsequent tax years.

Entry of Decision for 2010 and 2011

On June 19, 2015, the Court entered Decision by signing the proposed document and thereby determining a deficiency of $14, 485 for 2010 (plus an accuracy-related penalty) and no deficiency or penalty for 2011. Pursuant to Rule 190(a) and I.R.C. section 7482(a), a notice of appeal from that Decision would have been due 90 days thereafter, in September 2015. Neither party filed a notice of appeal (not surprisingly, in view of the settlement), and pursuant to section 7481(a)(1) that Decision became final in September 2015.

IRS examination of subsequent years

On May 23, 2016, petitioners received from the IRS a notice of a tax examination for their 2013 Federal income tax return. Petitioners allege that they "challenged the examination by letter [for which they do not specify a date] to the IRS, citing the June 2015 settlement for tax year 2011, indicating no deficiency, and the fact that the business operated by Petitioners remained unchanged in the ensuing two years. The IRS refused to honor the scope of the settlement agreement or the provision regarding no audit/examination over the next two years." The "provision" to which they refer is in the IRS's "Tax Guide for Small Business", I.R.S. Publication 334 (Dec. 18, 2018):

Repeat examinations If we examined your return for the same items in either of the 2 previous...

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