A petition for review was filed in the following case:
Diebold Foundation, Inc., CA-2—A foundation was liable for a tax deficiency as a transferee of a transferee. The foundation argued that since the IRS issued a notice with the incorrect tax year, the notice was invalid and that the Tax Court had no jurisdiction to determine a deficiency for any tax year other than a taxpayer’s correct tax year. However, before the IRS sent the foundation a notice in an attempt to collect the unpaid liability from a transferee of transferee of a taxpayer, the IRS had already determined that the personal holding company, the initial taxpayer, had a deficiency for a short tax year that gave rise to the transferee liability that identified the foundation as a taxpayer. In addition, the foundation was aware that the IRS sought to asses it for taxes owed by the personal holding company for its claimed tax year. Therefore, the foundation was not misled as to the basis for the deficiency; the notice was sufficient to confer jurisdiction upon the Tax Court.
Code Sec. 6213
CCH Reference – 2019FED ¶37,549.454