Tax Court Dismisses IRS Deficiency Case Over Address Error

The U.S. Tax Court has dismissed a tax deficiency case against Luis Carlos Ibarra Cano after finding that the IRS failed to properly notify the taxpayer due to an address error. The dispute arose when the IRS claimed Cano owed $4,422 in taxes for 2020, based on income reported on a Form W-2.

On January 23, 2023, the IRS mailed a notice of deficiency to “2206 TH St. Hempstead, TX 77445-4761,” instead of Cano’s correct last known address, “220 6th Street, Hempstead, TX 77445.” Cano filed his petition with the Tax Court 400 days later, well beyond the usual deadline.

The IRS argued that the case should be dismissed because the petition was late. However, the court found that the IRS’s notice was sent to the wrong address and therefore did not meet the legal requirement for proper notification. The court rejected the IRS’s claim that Cano’s possession of the notice proved its validity, emphasizing that the IRS must strictly comply with the “last known address” rule to establish jurisdiction.

Ultimately, the Tax Court dismissed the case for lack of jurisdiction, highlighting the importance of the IRS’s obligation to send deficiency notices to the correct address.

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Sources:

1.       https://www.currentfederaltaxdevelopments.com/blog/2025/6/18/notice-of-deficiency-validity-insights-from-cano-v-commissioner    

2.      https://www.law360.com/tax-authority/articles/2355214/tax-court-rejects-irs-deficiency-case-over-address-error  

3.      https://www.currentfederaltaxdevelopments.com/blog/2025/6/18/notice-of-deficiency-validity-insights-from-cano-v-commissioner   

   4. https://www.vitallaw.com/news/tax-court-lacked-jurisdiction-as-irs-failed-to-establish-valid-notice-of-deficiency-cano-                        tcm/ftd014ce06f3fe2e44cb0b6a880ad5394d6ad