Cool Fuel, Incorporated v. William H. Connett, Etc.

Cool Fuel, Incorporated appeals from the district court’s dismissal of its complaint to enjoin the Internal Revenue Service from collecting an assessed deficiency. We affirm.

Cool Fuel was audited by the IRS for its tax year ending April 30, 1974. Normally, the IRS must assess a tax deficiency within three years, but Cool Fuel had executed an agreement with the IRS extending the period during which the deficiency could be assessed. Pursuant to this waiver, the IRS had until December 31, 1978 to assess the deficiency.

On December 28, 1978, the IRS issued a notice of deficiency to Cool Fuel. The notice was mailed to the San Diego address used by Cool Fuel on the audited tax return. In 1977, however, Cool Fuel had relocated to Paramount, California. Consequently, the notice of deficiency was not received and was returned to the IRS marked: “Return to Sender. Not Deliverable as Addressed. Unable to Forward.”

Cool Fuel did not obtain information regarding the deficiency until August 3,1979, when it received a letter from the IRS at the Paramount address seeking payment of the deficiency. Cool Fuel did not receive a copy of the original deficiency notice until December 5, 1979.

On…