Rhodes v. IRS, No. 24-00662, 2025 WL 890155 (N.D. Ala. Mar. 21, 2025) (Cornelius, Mag. J.)

Rhodes v. IRS, No. 24-00662, 2025 WL 890155 (N.D. Ala. Mar. 21, 2025) (Cornelius, Mag. J.)

Re: Request for records concerning certain Form 1065 for tax year 2016

Disposition:  Granting defendant’s motion to dismiss

• Litigation Considerations, Exhaustion of Administrative Remedies:  The court finds that, “[h]ere, the IRS failed to comply with the deadlines set forth in the statute.”  “While the February 2, 2022 letter described unusual circumstances justifying imposition of the extended, 30-business day deadline, the IRS did not issue the Determination Letter until April 26, 2023 – more than a year after the deadline expired.”  “However, the IRS contends, because [plaintiff] did not seek judicial review before the Determination Letter issued, he was required to actually exhaust his administrative remedies prior to filing the instant lawsuit.”  “Simply put, the Determination Letter triggered [plaintiff’s] duty to exhaust his administrative appeals prior to filing this lawsuit.”  “His failure to do so dooms his claims here.”