Title 26 › Subtitle F › Chapter 80 › Subchapter A
26 U.S. Code Subchapter A - Application of Internal Revenue Laws
26 U.S. Code § 7803 - Commissioner of Internal Revenue; other officials
Congress appointed a Commissioner of the Internal Revenue See § 7803 (a)(1)
Congress clearly expressed that the Commissioner shall have certain duties and powers as the Secretary may prescribe [Delegate] See (7803 (a)(2)(A)
Thus far, we have the people granting limited powers to our legislatures (Congress), delegating
powers to the Sec. of the Treasury who delegates powers to the Commissioner of Internal Revenue. GOT IT?
Now, any execution of duties in accordance with the taxpayer rights; in discharging his duties, the Commissioner shall ensure that employees of the Internal Revenue Service (IRS) are familiar with and act in accordance with taxpayer rights as afforded by other provisions of this title, including
–:
(A) the right to be informed, [Taxpayers have the right to know what they need to do to comply with the tax laws. They are entitled to clear explanations of the laws and IRS procedures in all tax forms, instructions, publications, notices, and correspondence. They have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes.]
(B) the right to quality service, [Taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service.]
(C) the right to pay no more than the correct amount of tax, [Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.]
[what is in brackets above is what has been added into what is call “TAXPAYER BILL OF RIGHTS”, which is a publication offered by the IRS.]
Now let’s breakdown to who has the delegation of authority to produce or cause to be produce a Notice of Deficiency.
First we go to statute: 26 U.S. Code Chapter 63 - ASSESSMENT
§ 6212 - Notice of deficiency
(a) In general
If the Secretary
determines that there is a deficiency in respect of any tax imposed by subtitles A or B or chapter 41, 42, 43, or 44 he is authorized to send notice of such deficiency to the taxpayer by certified mail or registered mail. Such notice shall include a notice to the taxpayer of the taxpayer’s right to contact a local office of the taxpayer advocate and the location and phone number of the appropriate office.
The
implementing regulations clearly shows who has been delegated to perform such a task, to wit:
26 C.F.R. §301.6212-1Notice of deficiency.
(a)General rule. If a district director or director of a service center (or regional director of appeals), determines that there is a deficiency in respect of income, estate, or gift tax imposed by subtitle A or B, or excise tax
imposed by chapter 41, 42, 43, or 44, of the Code, such official is authorized to notify the taxpayer of the deficiency by either registered or certified mail.
“`When a statute limits a thing to be done in a particular mode, it includes the negative of any other mode.'" Id. (quoting Nat'l R.R. Passenger Corp. v. Nat'l Ass'n of R.R. Passengers, 414 U.S. 453, 459, 94 S.Ct.
690, 38 L.Ed.2d 646 (1974).” Brown v. CITY OF VALPARAISO, 67 NE 3d 652 - Ind: Court of Appeals 2016; See also Botany Worsted Mills v. United States, 278 US 282. (1929)
It is clear when you break it down to simple elements to challenge to the legitimacy of an alleged NOD, below is an excerpt from Leroy Muncy’s 8th circuit decision:
“We review determinations of the tax court’s jurisdiction de novo. See Bartman v. Comm’r, 446 F.3d 785, 787 (8th Cir. 2006) (standard of review; as Article I court, tax court’s jurisdiction is “strictly limited”). Upon review, we conclude that the tax court erred by declining to address the legitimacy of the NOD. See 26 U.S.C. §§ 6212(a) (authorizing “the Secretary” to issue NODs), 6213(a) (authorizing taxpayer to file suit in tax court for redetermination of
noticed tax deficiency); see also 26 U.S.C. § 7701(a)(11) (“the Secretary” means Secretary of Treasury or his delegate), (12) (defining Secretary’s “delegate”); Bartman, 446 F.3d at 787 (discussing jurisdictional nature of NODs).”
THE BOTTOM LINE UNTIL A VALID NOD IS IN EVIDENCE
“no action against the petitioner shall be made, begun, or
prosecuted until such notice has been mailed to the taxpayer…” 26 USC § 6213
