Boechler v. Commissioner
Headline: Tax collection appeal deadline held nonjurisdictional and subject to equitable tolling, allowing some taxpayers who miss the 30‑day window to seek Tax Court review in appropriate cases.
Holding: The Court held that the 30‑day deadline to petition the Tax Court after an IRS collection due process hearing is not jurisdictional and can be equitably tolled, so late filings may be accepted in appropriate cases.
- Allows taxpayers who miss the 30‑day deadline to seek Tax Court review if equitably tolled.
- Requires courts to consider tolling requests on individual facts, potentially reopening dismissed appeals.
- May change IRS timing for levies and collection actions after hearings.
Summary
Background
In 2015 the IRS told Boechler, P.C., a Fargo, North Dakota law firm, that its tax filings had a discrepancy. The IRS assessed an "intentional disregard" penalty and warned it would levy (seize) property to collect. Boechler asked for a collection due process hearing before the IRS Independent Office of Appeals. The Office sustained the proposed levy. A separate law, 26 U.S.C. §6330(d)(1), gives taxpayers 30 days after such a determination to petition the Tax Court. Boechler filed its petition one day late. The Tax Court dismissed for lack of power to hear the late filing, and the Eighth Circuit agreed.
Reasoning
The Court considered whether the 30‑day limit is a jurisdictional rule that the Tax Court cannot ignore. It explained that jurisdictional rules must be clearly stated by Congress, and many procedural time limits are not jurisdictional. The phrase "such matter" in §6330(d)(1) was ambiguous and lacked a clear antecedent, and nearby tax provisions show how Congress would have made a deadline jurisdictional if it intended to. The Court concluded the deadline is nonjurisdictional and thus can be subject to equitable tolling. Justice Barrett wrote for a unanimous Court, and the case was sent back to determine whether equitable tolling applies to Boechler.
Real world impact
The ruling lets taxpayers who miss the 30‑day window sometimes pursue Tax Court review if they show a valid reason for delay. It does not guarantee relief; courts must decide on a case‑by‑case basis. The decision changes how late petitions after IRS collection hearings are handled and may affect IRS collection timing and taxpayer protection during appeals.
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