Moving to a new home put Donna Davis in hot water with the IRS. Even though she was not in the military, servicemembers and their families could learn from her experiences and not end up with the same problems that she faced.

Summary of Key Facts

  • Ms. Davis moved from Newport Beach, California to Bishop, California in the summer of 2021.
  • The IRS issued Ms. Davis a Notice of Deficiency (NOD) on November 1, 2021. They sent it to her address in Newport Beach. This was the most recent address the IRS had on file for Ms. Davis.
  • Ms. Davis became aware of a problem in May 2024 when she received a collection notice from the IRS. She requested a copy of the NOD at that time.
  • Based on the original date of the NOD, the deadline to petition the Tax Court was January 31, 2022.  Ms. Davis filed a petition on June 26, 2024.
  • Ordinarily the Tax Court would refuse to hear the case because the petition was not timely filed. (Under Federal Law, the Tax Court lacks jurisdiction if the petition is not timely filed.) However, Ms. Davis alleged the NOD was never properly delivered to her because it was sent to the wrong address and the IRS should have known that it was the wrong address. The Tax Court agreed to hear the case to determine if the IRS properly delivered the NOD to Ms. Davis.
  • During the hearing Ms. Davis testified that she:
    • Filed a USPS change‑of‑address form (but could not produce any proof she had done this)
    • Called the IRS (she admitted that she was never able to get through and speak to anyone at the IRS)
    • Drafted a letter to IRS (no mailing or receipt documentation)
  • The IRS provided a USPS Form 3877, authenticating the NOD was certified‑mailed to her Newport Beach address, the last known address of the taxpayer at the time the NOD was filed.
  • The Tax Court, while seemingly sympathetic to Ms. Davis, found that she provided no evidence she had “clearly and concisely “notified the IRS of her address change.
  • Result: The court determined the NOD was properly filed, Ms. Davis did not petition the Tax Court for relief in a timely manner, and therefore the US Tax Court lacked jurisdiction on the matter.  The case was dismissed. Ms. Davis is required to comply with the NOD and subsequent collection notices. She claims she does not owe the tax, but she lost her right to challenge the IRS in Tax Court. Her only recourse is to pay the tax and then sue the United States in Federal Court – a path most taxpayers find too expensive to pursue.

Lessons for Military Families

Military families know all too well the challenges of frequent relocations. The Davis case underscores the risks of failing to document a change of address—with potentially severe tax consequences.

Strategies to Protect Yourself

  1. Prompt and Documented Address Updates
    • File form 8822, Change of Address, with the IRS when you PCS. Send it via certified mail and keep the receipt. (You do not need a return receipt. The certified mail receipt is sufficient to prove the IRS received the document.)
    • A similar form should be filed with the state or states where income tax returns are submitted.
    • Submit a Change of Address through USPS and retain your confirmation or receipt.
  2. Monitor Your IRS Transcripts
    • You can access your tax account transcripts via the IRS website. Retrieve them monthly and review them to see if notices have been issued to you
  3. Act Immediately on Notices
    • The IRS typically sends several notices requesting a response prior to sending a Notice of Deficiency (NOD). These precursor notices usually request additional information. Do not ignore them. Answer them in a timely manner.
    • A Tax Court petition must be filed within 90 days (150 days if living outside the U.S.) of the NOD date. Delays—even hours—can prove fatal to your case.
    • If you receive an NOD and you believe you do not owe the tax, then file a Tax Court petition. The IRS will nearly always remand your case to an Appeals Officer and attempt to resolve it without involving the Tax Court.

Transcript Monitoring & Authorized Representation at PIM Tax Services

At PIM Tax Services, we offer a Transcript Monitoring Service that provides added protection and peace of mind—especially critical for military families on the move.

How It Works

  • Form 2848 Authorization: We complete and submit IRS Form 2848, authorizing our owner and Enrolled Agent, Paul Allen, to act as your representative to the IRS. Paul is the only person at PIM Tax Services who will engage with the IRS on your behalf.
  • Central Address: We request the IRS send copies of all notices to our office. We will contact you by phone or email to confirm you have also received the notice. If you have not, we provide you a copy.
  • Proactive Monitoring: We have invested in specialized software to retrieve and monitor IRS account transcripts. Paul typically retrieves account transcripts weekly. The software then scans the transcripts for changes from the prior week and provides us with notifications and reports of any changes. With monitored accounts, we often know a notice is coming before it arrives.
  • Professional Response: You may not have responded to an IRS notice before, but Paul has responded to hundreds of them. Most issues can be resolved quickly and without much trouble.
  • Representation: It’s the IRS. Sometimes issues can’t be resolved easily. Paul has assisted clients with crafting their Tax Court petitions and represented them at Appeals hearings and through audits. (He has never lost at Appeals or at audit for a return prepared by PIM Tax Services.)

Why It Matters for Military Families

  • Reliable Mail Receipt: No worries about temporary or outdated mailbox addresses delaying notice delivery.
  • Fast Response: Early detection means deadlines are met—preserving your legal rights.
  • Documented Paper Trail: Every notice is scanned and archived in our system—crucial if a later challenge arises.

Final Thoughts

Davis v. Commissioner (T.C. Memo. 2025-72) is a powerful reminder that your rights as a taxpayer can hinge on timely filings and verifiable address updates. The nation may be grateful for your service, but that will not support your position in a dispute with the IRS. For military and other frequently- moving clients, safeguarding your rights means vigilance and documentation.

Executing a PCS move requires attention to hundreds of details. Let PIM Tax Services take one of those details off your plate. We can receive, monitor, and act on your behalf so critical tax deadlines are never missed. If you are interested in using our Transcript Monitoring Service, we are here to help every step of the way.