Opinion
4629-20S
09-23-2022
AIRREYON S. LOWE, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER TO SHOW CAUSE
Alina I. Marshall, Judge
On March 9, 2020, petitioner filed the petition commencing this case, wherein petitioner elected to have this deficiency case conducted under the small tax case procedures. Small tax cases are conducted more informally, are not appealable, and "shall not be treated as a precedent for any other case." § 7463(b); Rule 174(b).
Unless otherwise indicated, all statutory references are to the Internal Revenue Code, Title 26 U.S.C., in effect at all relevant times and all Rule references are to the Tax Court Rules of Practice and Procedure.
Section 7463(a) allows a small tax case to be conducted "at the option of the taxpayer concurred in by the Tax Court." Rule 171(d) provides: "The Court, on its own motion or on the motion of a party to the case, may, at any time before the trial commences, issue an order directing that the small tax case designation be removed and that the proceedings not be conducted as a small tax case." In considering whether to direct that a small tax case designation be removed, the Court considers, inter alia, whether "a decision in the case will provide a precedent for the disposition of a substantial number of other cases or where an appellate court decision is needed on a significant issue." Page v. Commissioner, 86 T.C. 1, 13 (1986) (quoting H.R. Rep. No. 95-1800, pt.4 at 278 (1978)); see also Dressler v. Commissioner, 56 T.C. 210, 212 (1971).
Pending before the Court is respondent's motion to dismiss for lack of jurisdiction, filed June 16, 2020 (respondent's motion). That motion, as further addressed by the parties in filings through December 1, 2021, presents an issue of first impression for the Court. As a result, the Court is inclined to direct that the small tax case designation be removed for the benefit of the Court and the broader public so that the opinion in this case addressing respondent's motion may be relied upon as precedent. Prior to directing that the small tax case designation be removed in this case and the proceedings not be conducted under the Small Tax Case Rules, the Court will allow the parties to state their objections, if any.
Accordingly, it is
ORDERED that, on or before October 24, 2022, the parties shall show cause in writing, if any, why the Court should not issue an order directing that the small tax case designation be removed in this case and the proceedings not be conducted under the Small Tax Case Rules.