§7522(a) — General rule

Section 7522(a) requires that the NOD “describe the basis for .

Section 7522(a) provides that the statutory notice must “describe the basis for, and identify the amounts (if any) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice.” “But even an inadequate description does not invalidate a notice.” Dees v.

Section 7522(a) provides that the notice must “describe the basis for, and identify the amounts (if any) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice.” But even an inadequate description does not invalidate a notice.

Section 7522(a) requires that a deficiency notice “describe the basis for, and identify the amounts (if any) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice.” However, “[a]n inadequate description * * * shall not invalidate such notice.” Id.

Section 7522(a) provides that the notice must "describe the basis for, and identify the amounts (ifany) of, the tax due, interest, additional amounts, additions to tax, and assessable penalties included in such notice." The parties do not dispute that a notice ofdeficiency was issued and that a petition was timely filed.

Their argument is that, because the SNOD was not sufficiently particular as to the factual or legal basis for the Commissioner's determination, "the Cuthbertsons were required to present differing evidence at trial to argue against every possible ground for disallowance." Section 7522(a) requires that a notice ofdeficiency "describe the basis for * * * tax due".

Section 7522(a) provides in pertinent part: - 7 - Any notice to which this section applies shall describe the basis for, and identify the amounts (ifany) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice.

Section 7522(a) requires that the SNOD "describe the basis for * * * the tax due".

Section 7522(a) provides that a notice ofdeficiency "shall describe the basis for, and identify the amounts (ifany) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice." It further provides that "[a]n inadequate description under the preceding sentence shall

Section 7522(a) provides that a notice ofdeficiency "shall describe the basis for, and identify the amounts (ifany) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice." It further provides that "[a]n inadequate description under the preceding sentence shall

Section 7522(a) provides that a notice ofdeficiency "shall describe the basis for, and identify the amounts (ifany) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice." It further provides that "[a]n inadequate description under the preceding sentence shall

Section 7522(a) provides that any deficiency notice "shall describe the basis for * * * the tax due * * * in such notice." An inadequate description ofthe basis for the deficiency does not invalidate the notice.

Section 7522(a) provides that a notice ofdeficiency "shall describe the basis for, and identify the amounts (ifany) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice." It further provides that "[a]n inadequate description under the preceding sentence shall

Section 7522(a) provides that a notice ofdeficiency "shall describe the basis for, and identify the amounts (ifany) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice." It further provides that "[a]n inadequate description under the preceding sentence shall

Section 7522(a) provides that a notice ofdeficiency "shall describe the basis for, and identify the amounts (ifany) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice." It further provides that "[a]n inadequate description under the preceding sentence shall

Section 7522(a) provides that a notice ofdeficiency "shall describe the basis for, and identify the amounts (ifany) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice." It further provides that "[a]n inadequate description under the preceding sentence shall

Section 7522(a) provides that the notice must "describe the basis for, and identify the amounts (ifany) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice." But even an inadequate description does not invalidate a notice.

Section 7522(a) requires that a deficiency notice "describe the basis for, and identify the amounts (ifany) of, the tax due, interest, additional amounts, additions to tax, and assessable penalties included in such notice." However, "[a]n inadequate description * * * shall not invalidate such notice." Sec.

Section 7522(a) provides that a notice ofdeficiency "shall describe the basis for, and identify the amounts (ifany) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice." It further - 8 - [*8] provides that "[a]n inadequate description under the preceding se

As to whether the notice of deficiency; is invalid behause it insufficiently sets forth respondent s pdsitior section 7522(a) requires that the notice "describe the basis for, änd identify the amoiints (if any) of, the taxsdue interest, additional amounts, additioris to the tax, and -assessable penalties included in such no'tice"." Theepurposes:of section 7-522 is ito provide the taxpayer with notice of the Commissioner's basis fo

Section 7522(a) requires the Commissioner to "describe the basis for" any increase in tax due in the notice of deficiency.

Section 7522(a) provides that a notice of- deficiency "shall describe the basis for, and identify the amounts (if any) of, the tax due, interest, additional amounts, additions td the tax, and assessable penalties included in such notice .

" Insofar as petitioner's-contentions may be.construed as attacking .the validity of thernotice`of deficiency in this regard,--they must'fail .` Section 7522(a) provides that a notice of deficiency "shall describe the basis for, and identify the 29Respondent concedes that these disallowed losses from 1993' and 1994 will be available to offset a portion of Carmen Jordan's unreported GMCC income for 1995, as discussed infra .

Section 7522(a) provides that "Any notice to which this section applies shall describe the basis for, and identify the amounts (if any) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice ." However, section 7522(a) also provides that an inadequate descripti

Section 7522(a) requires the Commissioner to “describe the basis for” any increase in tax due in the notice of deficien- cy.

7522(a) provides that notices of deficiency and other specified documents must include descriptions of the bases for certain matters.

Respondent further contends that the notice, pursuant to section 7522(a), is not invalid.

- 42 - BEGHE, J., concurring: More than 4 years ago Judge Raum made the suggestion that bears fruit today, that section 7522(a) provides a justification for shifting the burden of proof to respondent as a sanction for vague notices of deficiency.

Section 7522(a) .requires that the notice "describe the basis for, and identify the amounts ( if any) of, the tax due , interest , additional amounts, additions to the tax, and assessable penalties included in such notice ." The final sentence of section 7522 (a) provides : -"An inadequate description under the preceding [quoted] sentence shall not invalidate such notice ." Respondent ' s explanation of his deficiency determination informed petitioner that it was required to recognize gain becau

Section 7522(a) requires that the notice “describe the basis for, and identify the amounts (if any) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice.” The final sentence of section 7522(a) provides: “An inadequate description under the preceding [quoted] sentence shall not invalid

Whether the Notice of Deficiency Complies With Section 7522 Petitioner contends that the notice of deficiency in this case did not describe the basis for the amounts of tax due as required by section 7522(a) and that, as a sanction, respondent should bear the burden of proving that Eagle may not defer 9 Respondent contends that Eagle may not use sec.

She further argues that respondent's reliance on section 21(e) as an alternative basis for the disallowance is forbidden as "late-in-the-daymaneuvering." - 23 - While the first sentence ofsection 7522(a) does indeed require that a notice of deficiency give notice as described by petitioner Carlebach, the second sentence of that section adds: "An inadequate descriptionunder the preceding sentence shall not invalidate such notice." Moreover, we have held that section 7522(a) does not require the C

ent of the notice of deficiency. Section 7522 requires that the notice "describe the basis for, and identify the amounts (if any) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice." Sec. 7522(a). According to section 7522, the notice of deficiency must provide the taxpayer with notice of the Commissioner's basis for determining that deficiency. Cadwell v. Commissioner, 136 T.C. 38, 49 (2011); Shea v. Commissioner, 112 T.C. 183,

As to whether the notice of deficiency is invalid because it insufficiently sets forth respondent’s position, section 7522(a) requires that the notice “describe the basis for, and identify the amounts (if any) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice.” The purpose of section 7522 is to provide the taxpayer with notice of the Commissioner’s basis for determining a deficiency.

Section 7522(a) requires the Commissioner to “describe the basis for” any increase in tax due in the notice of deficiency. “A new theory that is presented to sustain a deficiency is treated as a new matter when it either alters the original deficiency or requires the presentation of different evidence.” Wayne Bolt & Nut Co. v. Commissioner, 93 T.C.

Section 7522(a) provides that the notice of deficiency "shall describe the basis for, and identify the amounts (if any) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice ." The section further provides : "An inadequate description under the preceding sentence shall not invalidate

Section 7522(a) provides that “Any notice to which this section applies shall describe the basis for, and identify the amounts (if any) of, the tax due, interest, additional amounts, additions to the tax, and assessable penalties included in such notice.” However, section 7522(a) also provides that an inadequate description “shall not invalidate su

Court Rules of Practice and Procedure. In her opening brief, petitioner asserted that the burden of proof should be shifted to respondent because the notice of deficiency failed to adequately describe the basis for the tax deficiency as required by sec. 7522(a). In response to an inquiry of the Court, respondent concedes that sec. 7491(a) applies in the present case because the examination of petitioner’s 1999 return began after July 22, 1998, the effective date of the statute. Respondent also

Section 7522(a) requires the Commissioner to “describe the basis for” any increase in tax due in the notice of deficiency. After a case in this Court has begun, Rule 142(a) places the burden of proof on the Commissioner “in respect of any new matter, increases in deficiency, and affirmative defenses, pleaded in the answer.” The difficulty for the H

Section 7522(a) requires that a notice of deficiency “describe the basis” for the tax deficiency. However, an “inadequate description under the preceding sentence shall not invalidate such notice.” Sec. 7522(a). Here, the notice of deficiency listed “Rental loss” as an adjustment and disallowed the entire amount of the rental losses claimed by peti

Section 7522(a) requires that a notice of deficiency “de- scribe the basis” for the tax deficiency. A new matter is raised when the basis or the theory on which the Commissioner of Inter- nal Revenue (Commissioner) relies was not stated or described in - 66 - the notice of deficiency and the new basis or the new theory requires the presentation of

Section 7522(a) provides that the notice “shall describe the basis for, and identify the amounts (if any) of, the tax due, interest, - 4 - additional amounts, additions to tax, and assessable penalties included in such notice. An inadequate description under the preceding sentence shall not invalidate such notice.” There is no requirement that leg

I agree with the majority and Judges Foley and Swift that the statute, despite its imperative mood and lack of a saving provision like the second sentence of section 7522(a), doesn’t require us to invalidate the notice.

Section 7522(a) provides in relevant part that any notice of deficiency “shall describe the basis for, and identify the amounts (if any) of, the tax due * * *. An inadequate description under the preceding sentence shall not invalidate such notice.” The purpose of section 7522 is to give the taxpayer notice of the Commissioner’s basis for determini

Respondent further contends that the notice, pursuant to section 7522(a), is not invalid.

As relevant here, section 7522(a) provides that any "notice * * * shall describe the basis for, and identify the amounts (if any) of, the tax due".

Although section 7522(a) provides the general rule that a notice of deficiency shall describe the basis for, and identify the amounts (if any) of tax due, an inadequate description shall not invalidate the notice under that provision.

In that year Congress added section 7522(a) to the Code to require NODs to “describe the basis for, and identify the amounts (if any) of, the tax due, interest, additional amounts, additions 24 [*24] to the tax, and assessable penalties included in such notice.” Construing that provision, we held that where a notice of deficiency fails to describe the basis on which the Comm

7522(a) and (b)(1). Failure to state the basis does not invalidate the notice, sec. 7522(a), but the burden ofproofshifts to the Commissioner, Shea v. Commissioner, 112 T.C. 183, 197 (1999). In Shea we said that the assertion ofa new basis after issuance ofa notice is similar to raising new matter on which the Commissioner bears the burden ofp

. [Emphasis added.] Thus, the statutes plainly provide that Tax Court deficiency litigation may extend beyond issues raised in the notice ofdeficiency.5 Also at odds with petitioners' attempted application ofChenery I to Tax Court review ofan NOD is section 7522(a). That section requires that an NOD "shall describe the basis for * * * the tax due"; but the consequence when the 5Thejurisdiction to determine a deficiency greater than in the notice has existed since 1924, andjurisdiction to determi

She further argues that respondent’s reliance on section 21(e) as an alternative basis for the disallowance is forbidden as “late-in-the-day maneuvering.” While the first sentence of section 7522(a) does indeed require that a notice of deficiency give notice as described by petitioner Carlebach, the second sentence of that section adds: “An inadequate description under the preceding sentence shall not invalidate such notice.” Moreover, we have held that section 7522(a) does not require the Commi

r had not yet deducted them. - 12 - Petitioner also contends that the fact that respondent had JRC and RSC Forms 1120S and Schedules K-1 for 2001 when respondent issued the notice of deficiency causes the notice of deficiency to be inadequate under section 7522(a). Petitioner gives no reason to support that contention. We conclude that petitioner’s reliance on section 7522(a) is misplaced. 3. Conclusion We conclude that petitioner bears the burden of proving he is entitled to deductions he claim

Petitioners rely on section 7522(a), requiring that the Commissioner, in notices of deficiency, “describe the basis for, and identify the amounts (if any) of, the tax due”.

7522(a) and (b). The notices of deficiency at issue here complied with section 7522. They include a clear written - 20 - explanation for each adjustment that respondent made, and they identify the amounts of tax, interest, and penalties due. Petitioners have only themselves to blame for their difficulties in these cases. They had many opportu

7522(a), applicable to notices mailed on or after January 1, 1990, provides in pertinent part that a notice of deficiency shall describe the basis for, and identify the amounts (if any) of, the tax due, interest, additional amount, additions to the tax, and assessable penalties included in such notice. An inadequate description under the - 15

7522(a) and (b). An inadequate description does not invalidate the notice. Sec. 7522(a). Here, the notice of deficiency clearly describes the basis for respondent's determination. Respondent's basis for the determination is that petitioner received the £570,000, A.T.O. records do not show that A.T.O. received the funds, and petitioner refused

7522(a) and (b). The notices of deficiency at issue here complied with section 7522. They include a clear written - 20 - explanation for each adjustment that respondent made, and they identify the amounts of tax, interest, and penalties due. Petitioners have only themselves to blame for their difficulties in these cases. They had many opportu

7522(a) and (b). An inadequate description does not invalidate the notice. Id. The notice must fairly advise the taxpayer that - 13 - the Commissioner has determined a deficiency and specify the year and amount. Abrams v. Commissioner, 84 T.C. 1308, 1310 (1985), affd. sub nom. Alford v. Commissioner, 800 F.2d 987, 988 (10th Cir. 1986) (also a