Peter Billingsley v. Commissioner of the Internal Revenue Service

Peter Billingsley, a minor who has a substantial income from his work in the entertainment industry, appeals the Tax Court’s denial of his motion under Tax Court Rule 123(c) to set aside the Tax Court’s dismissal of his case for failure to prosecute. The motion was made on the ground that the Tax Court lacked jurisdiction. The Tax Court denied the motion, holding that it lacked jurisdiction to vacate its final order of dismissal. We reverse, holding that the Tax Court has jurisdiction to consider its own jurisdiction over the original petition, and remand to enable the Tax Court to undertake this consideration.

FACTS

The facts of this case revolve around a series of communications between the Internal Revenue Service (IRS) and the taxpayer’s accountant. None of the communications asserting liability of $51,227.70 were ever brought to the taxpayer’s attention.

The Commissioner of Internal Revenue (Commissioner) claims that on September 27, 1983, he mailed a letter to Billingsley, care of the accounting firm Bernard D. Kleinman & Co. (Kleinman), the address designated by Billingsley’s father on an IRS power of attorney form executed in connection with an audit of…