When providing tax preparation or tax planning services to our clients, we recommend that all mailings to tax jurisdictions be done using USPS certified mailing with a return receipt or by USPS Priority Mail and request a tracking number. If for any reason the taxpayer needs to prove that the mailing was timely made on or before the due date, the receipts from these mailings will be accepted by the IRS (and the courts) as proof of timely filing.
In the Tax Court case of Eric Lamart Sanders v. Commissioner, U.S. Tax Court, T. C. Summary Opinion 2014-47, (May 12, 2014), the facts were clear that the taxpayer timely mailed a petition to the Tax Court via UPS ground. Since the mailing was received by the Tax Court after the due date, it was dismissed by the Court as an untimely filing. What about the rule that if timely-mailed, it is timely-filed?
The Tax Court agreed with the IRS that although the mailing date which appeared on the UPS ground label affixed to the envelope in which the petition was sent showed that the mailing was made prior to the due date, the only date that counted was the actual delivery date to the Tax Court which was received after the 90-day filing period had expired. Why did the Tax Court reach this decision?
A UPS ground mailing is not a “designated private delivery service” within the meaning of Internal Revenue Code (IRC) Sec. 7502. In other words, the IRC specifically identifies the types of private delivery services, that if used, will have the date of mailing be considered the date of filing. Because the taxpayer failed to use one of the private delivery services designated in the IRC, the date of delivery rather than the date of mailing was the determining factor.
When dealing with the IRS, taxpayers who don’t follow the IRS’s rules often say that they are not concerned because a logical person would agree with them. Unfortunately when dealing with the IRS, its regulations, and the IRC, logic does not prevail over tax legislation as Eric Lamart Sanders learned the hard way.
If you want to learn more about your personal tax situation and how working with a tax professional will benefit you, we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA officeto discuss your situation. You can also schedule a consultation at Click Here.
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