Ninth Circuit: Mailbox rule not applicable for then-ineligible private delivery service
Ninth Circuit: Mailbox rule, private delivery service
The U.S. Court of Appeals for the Ninth Circuit today affirmed the U.S. Tax Court’s dismissal of taxpayer petitions for lack of jurisdiction, finding that the petitions were not timely received and that the mailbox rule did not apply because the delivery was not by a then-eligible private delivery service.
In general, taxpayers can invoke the “mailbox rule”—that a document will be deemed filed when dispatched—only if the taxpayer uses one of the particular delivery services that the IRS has specifically designated for that purpose.
The taxpayer representatives in this case delegated the task of arranging delivery to a secretary who selected an overnight delivery service that was not at that time on the published list of approved delivery services (it was added to the list two weeks later). The petitions were not received by the Tax Court until two days after being dropped off at the delivery service’s office in California.
The Tax Court concluded that the petitions had not been timely received and that the mailbox rule did not apply, and it dismissed the petitions for lack of jurisdiction. The Ninth Circuit today affirm.
The case is: Organic Cannabis Foundation, LLC v. Commissioner, No. 17-72874 (9th Cir. June 18, 2020). Read the Ninth Circuit’s decision [PDF 110 KB]
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.